Related Party Transactions

12 Months Ended

Dec. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions

Note 15.  Related Party Transactions

As of March 31, 2011, GEM entered into the $500,000 Line of Credit Agreement pursuant to the LOC Agreement with a related party lender, pursuant to which the lender initially advanced to GEM $100,000, evidenced by a promissory note of the same amount dated as of equal date. During the second quarter ended June 30, 2011, GEM borrowed the balance of $400,000 available under the LOC Agreement. The note bears interest at a rate of 12% per year, with interest on the note paid monthly in arrears. The repayment of the note was due on March 31, 2012.  The parties are in discussions to extend the maturity date of the loan. This balance was outstanding at December 31, 2012 and 2011.

During the year ended December 31, 2011, certain of our affiliates, a consultant of our Company and a related party (collectively, the "Lenders"), provided us with short-term bridge loans in aggregate amount of $280,400 (the "Loans").  The Loans were not evidenced by promissory notes and do not bear interest.  During the fourth quarter of 2011, we were able to pay back $41,000 of the Loans.  At December 31, 2012 and 2011, there was a balance owed of $239,400.

In addition, see (i) Note 8. Debt and Warrants Issuance for a discussion of the 8% secured promissory note and warrants that we issued to Water Tech, along with the advance to Water Tech, and (ii) Note 14.  Commitments and Contingencies for a discussion of the Sales Agreement.