2. DEBT

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

2. DEBT

The table below summarizes the Company’s debt at March 31, 2015 and December 31, 2014:

Debt Description	March 31,		December 31,
	2015		2014		Maturity	Rate
Bank Loan	$	5,000,000	$	5,000,000	Jun-16		3.85	%
Capital lease obligations - Noteholder lease		108,042		113,093	Aug-19		8.00	%
Capital lease obligations - office furniture		28,102		29,922	Sep-16		9.80	%
Convertible notes - related parties, net of discount of $3,755,469 and $4,338,901, respectively		28,268,762		25,985,330	Nov-16		8.00	%
Convertible notes, net of discount of $50,129		680,640		680,640	Nov-16		8.00	%
Total debt		34,085,546		31,808,985
Less:  current portion of long term debt
Capital lease obligations		28,983		28,378
Total current portion of long term debt		28,983		28,378
Debt - long term	$	34,056,563	$	31,780,607

Convertible Notes

During the three months ended March 31, 2015, the Company sold $1,700,000 of additional unsecured Convertible Subordinated Notes (the “2014 NPA Notes”) to Union Bancaire Privée (“UBP”) under its existing unsecured Convertible Subordinated Note Purchase Agreement dated December 10, 2014  (the “2014 NPA”) at conversion prices equal to $1.43 on the date of sale.

The table below summarizes convertible notes issued as of March 31, 2015 by type:

Convertible Notes Type:	Balance
2007 NPA notes, net of discount	$	26,749,402
2014 NPA notes		2,200,000
Total convertible notes	$	28,949,402