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RELATED PARTY TRANSACTIONS
9 Months Ended
Sep. 30, 2013
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 14 – RELATED PARTY TRANSACTIONS

 

At September 30, 2013, seven shareholders of the Company held $550,249 of the senior secured convertible notes payable and at December 31, 2012, five shareholders of the Company held $491,249 of the senior secured convertible notes payable.

 

At September 30, 2013, one shareholder of the Company held $98,000 and at December 31, 2012 held $140,000 of convertible notes payable.

 

At September 30, 2013 and December 31, 2012, three shareholders of the Company held $661,000 of unsecured notes payable. 

 

The Company maintains an office at the home of its Vice Chairman. No formal lease agreement exists and no direct rent expense has been incurred. However, related occupancy costs of $0 and $2,199 were incurred during the three and nine months ended September 30, 2013 and $9,360 and $24,523 were incurred during the three and nine months ended September 30, 2012.