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RELATED PARTY LOANS
9 Months Ended
Sep. 30, 2012
RELATED PARTY LOANS  
RELATED PARTY LOANS
8. RELATED PARTY LOANS
 
Related  parties are natural  persons or other  entities  that have the ability,
directly  or  indirectly,  to  control  another  party or  exercise  significant
influence  over the other party in making  financial  and  operating  decisions.
Related parties include other parties that are subject to common control or that
are subject to common significant influences.
 
Loans from a related  party  consist of the  following at September 30, 2012 and
December 31, 2011:
 
                                                                September 30,          December 31,
                                                                    2012                  2011
                                                                 ----------            ----------
Loan  and  security  agreement  with  Capstone  Capital
Group,  LLC which  expires on November 1, 2013  bearing
interest  at  18%  per  annum.   Maximum  borrowing  of
$1,000,000                                                       $1,001,346            $  338,908
 
Loan  and  security  agreement  with  Capstone  Capital
Group,  LLC  which  expires  on May  15,  2015  bearing
interest  at  18%  per  annum.   Maximum  borrowing  of
$1,000,000                                                          841,855               499,577
                                                                 ----------            ----------
Total loans and amounts payable to related parties               $1,843,201            $  838,485
                                                                 ==========            ==========
 
Interest  expense for these loans amounted to $258,150 and $132,711 for the nine
months ended September 30, 2012 and 2011, respectively.