7.	NOTE PAYABLE

In May 2013, the Company entered into a contract for the purchase of an Enterprise Resource Planning (“ERP”) system for approximately $150,000. The total cost for the ERP system including interest is approximately $159,000 with an implicit interest rate of approximately 6%.

Pursuant to the terms of this non-cancelable purchase agreement (“Note payable”) in effect at September 30, 2013, the future minimum principal payments are as follows:


Year Ended December 31,
2013	$	57,284
2014		73,987
2015		18,497

Total	$	149,768

In the third quarter of 2013, the Company decided to abandon the implementation of the ERP system. As such, the purchase was fully expensed in 2013. The Company will reserve the right to implement the ERP system at a future date.