Short Term Debt - Related Parties

9 Months Ended

Sep. 30, 2014

Short Term Debt - Related Parties [Abstract]

Short Term Debt - Related Parties

Note 5 - Short Term Debt – Related Parties

In December of 2011, we entered into an unsecured promissory note of $50,000 to a former board member and investor. This obligation specifies a deferred interest payment that accumulates at $500 per month. For each of the nine months ended September 30, 2014 and 2013, we accrued interest charges of $4,500.

In January 2014, the outstanding related party notes payable of $75,000 to Financial Summit Ventures, Inc. and $48,000 to Condon Partners, LLC were repaid in full. Pursuant to the terms of the Merger, funds sufficient to retire both of these notes were placed into escrow prior to December 31, 2013. The escrowed funds at December 31, 2013 are presented as restricted cash on the consolidated balance sheet. Financial Summit Ventures, Inc. is owned by our former CFO Steven Adler. The notes were guaranteed by Jeff Glasse (our Founder, Chairman and CEO and the former owner of Kogeto Lucy, LLC) and secured by certain patents held by Kogeto Lucy, LLC, both the guarantee and patents were released upon payment.