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Note 3 - Short-Term Note Payable
 12 Months Ended
Dec. 31, 2012
Debt Disclosure [Abstract]  
Short-Term Note Payable

NOTE 3 — 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 5. During the year ended December 31, 2012 the Company made principal payments of $304,711 and interest payments of $120,289 on this promissory note. As of December 31, 2012, the outstanding balance on this note payable is $95,289.