6. NOTES PAYABLE

6 Months Ended

Jun. 30, 2015

Payables and Accruals [Abstract]

6. NOTES PAYABLE

NOTE 6: NOTES PAYABLE

Notes payable consist of:

	June 30, 2015			December 31,
	(Unaudited)			2014
Note payable to a third party, unsecured, bearing interest at 5% per annum, due on May  30, 2015, is subordinated in right of payment to the prior payment in full of all bank rediscount line of credit or loan	$	—		$	73,750
Stockholder note payable, secured, bearing interest at 10% per annum, due on October 31, 2015, is subordinated in right of payment to the prior payment in full of all future bank rediscount lines of credit or loans		1,500,000			1,500,000
Note payable to an entity owned by a director, secured, bearing interest at 5% per annum, due on August 31, 2015		110,000			110,000
Note payable to a third party, unsecured, bearing interest at 5% per annum, due on September 30, 2015, is subordinated in right of payment to the prior payment in full of all bank rediscount line of credit or loan		55,000			—
		1,665,000			1,683,750
Notes payable - current portion		1,665,000			1,683,750
Notes payable – long term portion		—			—
Less: Unamortized debt discount and debt issuance costs		(387,117	)		(536,841	)
Notes payable – current portion, net of debt discounts	$	1,277,883		$	1,146,909

The Company recorded interest expense on these notes of $40,471 and $80,404 for the three months and six months periods ended June 30, 2015 and $38,419 and $76,828 for the same comparable periods ended June 30, 2014.