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9. Promissory Note
12 Months Ended
Dec. 31, 2012
Notes  
9. Promissory Note

9.   PROMISSORY NOTE

 

The Company renewed a promissory note during June 2012 from National Bank of California for $700,000, which as of December 31, 2012 and 2011 has a balance owing of $697,842 and $626,807, respectively. The interest rate is 2.5% over the index payable every month. The note matures in June 2013.

 

On July 30, 2012, the Company entered into a promissory note for the purchase of equipment in the amount of $393,920, with an interest rate of 4.5%.  The loan is secured by the equipment that was purchased.  The Company made the following agreements for payment of the loan. First, three (3) monthly consecutive interest payments beginning August 30, 2012 calculated on the unpaid principal balance, to be followed by fifty-nine (59) monthly consecutive principal and interest payments of $5,488 each beginning on November 30, 2012. The final payment of principal and interest of $131,093 is due on October 30, 2017, the notes maturity date. The interest paid on the note as of December 31, 2012 was $15,570.