Related Party and Other Short Term Notes Payable	3 Months Ended
Jun. 30, 2013
Notes to Financial Statements
Related Party and Other Short Term Notes Payable	NOTE 5 — Related Party and Other Short Term Notes Payable On January 31, 2013, the Company’s Board of Directors approved a subordinated line of credit of up to $1,000,000. The term of the credit agreement is six months ending August 1, 2013, unless extended by both parties. Interest accrues at the rate of 1% per week and is to be paid weekly. Balances outstanding under the line of credit are to be repaid in full on or before the maturity date. Balances under the line of credit are secured by all of the assets of the Company and are subordinated to amounts outstanding under the Company’s working capital bank line of credit with Silicon Valley Bank. Additionally, the Company’s Board of Directors approved an advance under the line by the Company’s Chairman of up to $550,000. The funds raised are being used for working capital purposes. In the first quarter of 2013, the Company raised a total of $550,000 in funds under such terms, of which $300,000 and $50,000 are from the Company’s Chairman and Chief Executive Officer, respectively, and $200,000 from other sources. Interest expense in the three and six months ended June 30, 2013 related to the line of credit was $71,500 and $106,786, respectively. In July 2013, the credit agreements were amended to extend the maturity date to December 1, 2013. On August 31, 2012, the Company issued a promissory note to a lender for $400,000. The promissory note matured on January 31, 2013 and had an implied monthly compounded interest rate of 9.7%. The Company was required to pay a total of $528,000 principal and interest on the promissory note in weekly installments of approximately $25,000. The note was secured by substantially all the Company’s assets including intangible assets. This promissory note was subordinated to the bank financing arrangement as described in Note 6. During the first quarter 2013, the Company completed the repayment of the remaining principle and interest in the amounts of $95,289, and $7,711, respectively.

Related Party and Other Short Term Notes Payable

3 Months Ended

Jun. 30, 2013

NOTE 5 — Related Party and Other Short Term Notes Payable

On January 31, 2013, the Company’s Board of Directors approved a subordinated line of credit of up to $1,000,000. The term of the credit agreement is six months ending August 1, 2013, unless extended by both parties. Interest accrues at the rate of 1% per week and is to be paid weekly. Balances outstanding under the line of credit are to be repaid in full on or before the maturity date. Balances under the line of credit are secured by all of the assets of the Company and are subordinated to amounts outstanding under the Company’s working capital bank line of credit with Silicon Valley Bank. Additionally, the Company’s Board of Directors approved an advance under the line by the Company’s Chairman of up to $550,000. The funds raised are being used for working capital purposes. In the first quarter of 2013, the Company raised a total of $550,000 in funds under such terms, of which $300,000 and $50,000 are from the Company’s Chairman and Chief Executive Officer, respectively, and $200,000 from other sources. Interest expense in the three and six months ended June 30, 2013 related to the line of credit was $71,500 and $106,786, respectively. In July 2013, the credit agreements were amended to extend the maturity date to December 1, 2013.

On August 31, 2012, the Company issued a promissory note to a lender for $400,000. The promissory note matured on January 31, 2013 and had an implied monthly compounded interest rate of 9.7%. The Company was required to pay a total of $528,000 principal and interest on the promissory note in weekly installments of approximately $25,000. The note was secured by substantially all the Company’s assets including intangible assets. This promissory note was subordinated to the bank financing arrangement as described in Note 6. During the first quarter 2013, the Company completed the repayment of the remaining principle and interest in the amounts of $95,289, and $7,711, respectively.