Related Party and Other Short Term Notes Payable	9 Months Ended
Sep. 30, 2014
Related Party Transactions [Abstract]
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 including up to $550,000 in advances by the Company’s Chairman. The funds raised are being used for working capital purposes. On September 30, 2014 and December 31, 2013, a total of $650,000 in notes payable were outstanding under this line, of which $450,000 and $50,000 respectively are from the Company’s Chairman and Chief Executive Officer. The notes in effect at September 30, 2014 mature on June 1, 2016, and are repayable by the Company at any time and have an interest rate of 18% per annum payable monthly in cash. Investors may request note repayment on or after October 1, 2014. 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 credit facility with its bank. Interest expense for the three and nine month periods ended September 30, 2014, related to the line of credit notes were $29,490 and $179,929 respectively. Interest expense for the three and nine month periods ended September 30, 2013, related to the line of credit notes were $71,986 and $178,772, respectively. In October 2014, $50,000 of these subordinated notes were redeemed by a non related party note holder. The notes originally issued under the subordinated line of credit had an initial expiration date of December 1, 2013, which in November 2013 was extended to June 1, 2014. Interest on the original notes accrued at the rate of 1% per week and was paid weekly through the extended maturity date of June 1, 2014. On May 15, 2014, the Company’s Board of Directors approved the issue of subordinated notes totaling $650,000 to replace the subordinated line of credit notes in the same amount maturing on June 1, 2014 mentioned previously. The replacement subordinated notes are two-year notes that mature on June 1, 2016 as discussed in the preceding paragraph. The Company extended the expiration date of 35,775 warrants originally issued to the outside investors on May 26, 2009 to June 1, 2016. These warrants were scheduled to expire on May 26, 2014. The warrants are exercisable into common stock at $1.80 per share. The Board approved stock option grants of 45,000 and 5,000 shares respectively for the Company’s Chairman and Chief Executive Officer. These stock options will vest monthly over a 24 month period. The Company determined per ASC 470-50-40-10, that the present value of the cash flows under the terms of the replacement subordinated notes payable differed by more than 10 percent from the present value of the remaining cash flows of the subordinated notes being replaced. Therefore, debt extinguishment accounting rules apply. There was no change in the net carrying value of the subordinated notes. However, the value of the options granted as consideration in connection with the issuance of the replacement subordinated notes was determined to be $61,500, of which the full amount was accordingly recorded as a loss on extinguishment of debt in the three month period ending June 30, 2014, and shown in the accompanying Condensed Statements of Operations for the nine months ended September 30, 2014.

Related Party and Other Short Term Notes Payable

9 Months Ended

Sep. 30, 2014

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 including up to $550,000 in advances by the Company’s Chairman. The funds raised are being used for working capital purposes. On September 30, 2014 and December 31, 2013, a total of $650,000 in notes payable were outstanding under this line, of which $450,000 and $50,000 respectively are from the Company’s Chairman and Chief Executive Officer. The notes in effect at September 30, 2014 mature on June 1, 2016, and are repayable by the Company at any time and have an interest rate of 18% per annum payable monthly in cash. Investors may request note repayment on or after October 1, 2014. 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 credit facility with its bank. Interest expense for the three and nine month periods ended September 30, 2014, related to the line of credit notes were $29,490 and $179,929 respectively. Interest expense for the three and nine month periods ended September 30, 2013, related to the line of credit notes were $71,986 and $178,772, respectively. In October 2014, $50,000 of these subordinated notes were redeemed by a non related party note holder.

The notes originally issued under the subordinated line of credit had an initial expiration date of December 1, 2013, which in November 2013 was extended to June 1, 2014. Interest on the original notes accrued at the rate of 1% per week and was paid weekly through the extended maturity date of June 1, 2014. On May 15, 2014, the Company’s Board of Directors approved the issue of subordinated notes totaling $650,000 to replace the subordinated line of credit notes in the same amount maturing on June 1, 2014 mentioned previously. The replacement subordinated notes are two-year notes that mature on June 1, 2016 as discussed in the preceding paragraph. The Company extended the expiration date of 35,775 warrants originally issued to the outside investors on May 26, 2009 to June 1, 2016. These warrants were scheduled to expire on May 26, 2014. The warrants are exercisable into common stock at $1.80 per share. The Board approved stock option grants of 45,000 and 5,000 shares respectively for the Company’s Chairman and Chief Executive Officer. These stock options will vest monthly over a 24 month period.

The Company determined per ASC 470-50-40-10, that the present value of the cash flows under the terms of the replacement subordinated notes payable differed by more than 10 percent from the present value of the remaining cash flows of the subordinated notes being replaced. Therefore, debt extinguishment accounting rules apply. There was no change in the net carrying value of the subordinated notes. However, the value of the options granted as consideration in connection with the issuance of the replacement subordinated notes was determined to be $61,500, of which the full amount was accordingly recorded as a loss on extinguishment of debt in the three month period ending June 30, 2014, and shown in the accompanying Condensed Statements of Operations for the nine months ended September 30, 2014.