Note 7— Debt

Since the Company consummated a single offering of at least $10 million in August 2011, certain note holders were entitled to a mandatory redemption of the outstanding principal plus any interest payable in cash within three business days of the consummation. Approximately 21% of the original note of $6.0 million had a mandatory redemption requirement. Approximately $1.7 million including interest was paid in the third quarter after consummation of the offering. The remaining note holders signed amendments to their notes raising the mandatory redemption for a single offering or a series of offerings within a six-month period from $10 million to $30 million. The promissory note is due June 2012.

Total debt is comprised of the following:


	September 30,		December 31,
	2011		2010
Current debt	$	6,394,532	$	56,911

Total current debt		6,394,532		56,911
Long-term debt		—		7,290,881

Total debt	$	6,394,532	$	7,347,792