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

Note payable to an entity owned by a director, secured, bearing interest at 5% per annum, due on August 31, 2015

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