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NOTES PAYABLE - RELATED PARTIES
6 Months Ended
Jun. 30, 2013
Due to Related Parties [Abstract]  
Notes Payable - Related Parties

On March 27, 2012, the Company’s wholly-owned subsidiary Xhibit Interactive issued a promissory note in the amount of $500,000 to one of its members. The note had a maturity date, as amended, of December 31, 2012 and included interest at a simple rate of 10% per annum. On January 11, 2013 the note was cancelled. In exchange for the cancellation, the Company issued 71,429 shares of common stock to the note holder and issued a new note in the amount of $250,000, which bears interest at a 10% annual rate and has a maturity date of December 31, 2013. The note holder signed a waiver of default for the period December 31, 2012 to the date the note was cancelled.  Through June 30, 2013, the Company has made principal payments totaling $40,000. At June 30, 2013 the remaining outstanding balance due on the note is $210,000.

 

On May 29, 2012, the Company’s wholly-owned subsidiary Xhibit Interactive issued a promissory note in the amount of $200,000 to one of its members.  The note had a maturity date, as amended, of December 31, 2012 and included interest at a simple rate of 10% per annum. On January 14, 2013 the note was cancelled.  In exchange for the cancellation, the Company issued 57,143 shares of common stock to the note holder.  The note holder signed a waiver of default for the period December 31, 2012 to the date the note was cancelled.

 

On March 28, 2013, the Company issued a promissory note in the amount of $100,000 to one of its shareholders. The note bears interest at a simple rate of 10% per annum and is due and payable on March 28, 2014.

 

On April 15, 2013, the Company issued unsecured promissory notes in the aggregate principal amount of $375,000 to four of its shareholders. The notes bear interest at a fixed amount equal to 10% of the principal amount and are due and payable on March 31, 2014.

 

On April 30, 2013, the Company issued unsecured promissory notes in the aggregate principal amount of $210,000 to two of its shareholders. The notes bear interest at a fixed amount equal to 10% of the principal amount and are due and payable on March 31, 2014.

 

On May 29, 2013, the Company issued unsecured promissory notes in the aggregate principal amount of $350,000 to two of its shareholders. The notes bear interest at a fixed amount equal to 10% of the principal amount and are due and payable on May 31, 2014.