XML 38 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
7. SUBSEQUENT EVENTS
9 Months Ended
Sep. 30, 2012
Subsequent Events [Abstract]  
7. SUBSEQUENT EVENTS

On October 1, 2012, the Company sold a Note to UBP in the principal amount of $350,000 due November 14, 2016, upon substantially the same terms and conditions as the previously issued Notes. On October 15, 2012, the Company sold a Note to Atlas in the principal amount of $200,000 due November 14, 2016, upon substantially the same terms and conditions as the previously issued Notes.  On October 31, 2012, the Company sold a Note to UBP in the principal amount of $100,000 due November 14, 2016, upon substantially the same terms and conditions as the previously issued Notes

 

On October 11, 2012, the Company terminated the Web Services Agreement dated October 11, 2010 between the Company and UR Association, LLC. (“URA”) at the contract termination date because it no longer intended to provide these specialized services to by URA.  The Company did not incur any material termination penalties as a result of its termination of the Web Services Agreement, but the termination may result in future quarterly loss of sales in the amount of approximately $100,000 for the Company.

 

Effective September 11, 2012, Mr. Dror Zoreff resigned his position as Interim Chief Executive Officer and on November 1, 2012, Mr. Dror Zoreff, resigned his position as Chairman of the Board of Directors of Smart Online, Inc.  Mr. Zoreff will continue to serve as a member of the Board of Directors.