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Related Party and Other Short-Term Notes Payable
9 Months Ended
Sep. 30, 2015
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 were used for working capital purposes. On July 31, 2015, the Company repaid a $100,000 note to an investor. On September 30, 2015, a total of $500,000 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 at the Company’s discretion, 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 and nine month periods ended September 30, 2015 related to the line of credit were $24,214 and $77,770, respectively. Interest expense for the three and nine month periods ended September 30, 2014 related to the line of credit were $29,490 and $179,929, respectively.