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Related Party and Other Short-Term Notes Payable
3 Months Ended
Mar. 31, 2015
Debt Disclosure [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 March 31, 2015 and December 31, 2014, a total of $600,000 in notes payable were outstanding under this line, of which $450,000 and $50,000 respectively were from the Company’s Chairman and Chief Executive Officer. The notes mature on June 1, 2016 are repayable by the Company at any time, and have an interest rate of 18% per annum payable monthly in cash. Beginning October 1, 2014, investors may request note repayment. 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 month periods ended March 31, 2015 and 2014 related to the line of credit were $26,630 and $83,571, respectively.