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RELATED PARTY TRANSACTIONS
 3 Months Ended
Sep. 30, 2012
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS
6.     RELATED PARTY TRANSACTIONS
 
Transactions with related parties and their affiliates are made in the ordinary course of business on substantially the same terms and conditions, including interest rates and collateral, as those prevailing at the same time for comparable transactions with other unaffiliated third parties, and do not, in the opinion of management, involve more than normal credit risk or present other unfavorable features.  For the nine months ended September 30, 2012 and 2011, related parties include the following:
 
·  
Robert DelVecchio, an officer and a member of the board of directors of the Company and his affiliate Brockington Securities, Inc. (collectively, "DelVecchio").
 
·  
Haresh Sheth, a former officer and a member of the board of the directors of the Company  and currently a consultant to the Company and his affiliated entities Janus Financial Services, Inc., Janus Finance Corporation and Woodfield Capital Services, Inc (collectively, "Sheth").
 
·  
Mosaic Capital Advisors, LLC, directly appointed directors and owner of approximately 87% and 87% of the Company’s Series A Preferred as December 31, 2011 and 2010, respectively, and its affiliated entities Mosaic Financial Services (“MFS”), LLC, Mosaic Private Equity Fund, L.P., Mosaic Capital Management, Ltd. and its affiliated accredited investor (collectively, “Mosaic”).
 
In July 2011, Haresh Sheth resigned his position as President and member of the board of directors of the Company.  There were no severance costs associated with his resignation.  Mr. Sheth will continue to continue to provide consulting services to the Company for a term of one year in exchange for 225,000 restricted stock grants of the Company’s stock.
 
Outstanding debt to related parties consisted of the following at September 30, 2012 and December 31, 2011:
 

September 30, 2012 (unaudited)
                  
   
DelVecchio
    
Mosaic
    
Total
  
                   
Notes payable - revolving
   $ 299,000     $ -     $ 299,000  
Unsecured convertible debentures, net
     -       498,456       498,456  
Accrued interest
     21,648       53,863       75,511  
                         
    $ 320,648     $ 552,319     $ 872,967  
                         
December 31,2011
                        
   
DelVecchio
    
Mosaic
    
Total
  
                         
Notes payable - revolving
   $ 158,320     $ -     $ 158,320  
Unsecured convertible debentures, net
     -       474,212       474,212  
Accrued interest
     4,402       10,822       15,224  
                         
    $ 162,722     $ 485,034     $ 647,756