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Short-Term Note Payable
9 Months Ended
Sep. 30, 2012
Debt Disclosure [Abstract]  
Short-Term Note Payable

NOTE 5 — Short-Term Note Payable

 

On August 31, 2012, the Company issued a promissory note to a lender for $400,000. The promissory note matures on January 31, 2013 and has an implied monthly compounded interest rate of 9.7%. The Company is required to pay a total of $528,000 principal and interest on the promissory note in weekly installments of approximately $25,000. The note is secured by substantially all the Company’s assets including intangible assets. This promissory note is subordinated to the bank financing arrangement as described in Note 7. During the three months ended September 30, 2012 the Company made principal payments of $36,160 and interest payments of $38,841 on this promissory note. As of September 30, 2012, the outstanding balance on this note payable is $363,840.