Notes Receivable from Stockholders

12 Months Ended

Dec. 31, 2012

Notes Receivable from Stockholders

15. NOTES RECEIVABLE FROM STOCKHOLDERS

In November 2008, the Company issued secured recourse Promissory Notes (“promissory notes”) totaling $1.5 million to the Company’s founders. These promissory notes, secured by 1,536,000 shares of the Company’s common stock under separate stock pledge agreements executed by the Company’s founders, bear interest at 2.97% per year over a period of five years. The number of shares held as collateral may be adjusted from time to time due to changes in the value of the Company’s common stock. As of December 31, 2010, amounts owed under these promissory notes, including accrued interest, totaled $1.6 million, was classified as notes receivable from stockholders, a reduction to stockholder’s equity (deficit). The principal amount of the notes and accrued interest of $1.6 million was fully repaid by the Company’s founders in March 2011.