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SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2013
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

11. SUBSEQUENT EVENTS

 

We have evaluated subsequent events after the balance sheet date through the date of filing of these consolidated financial statements with the Securities and Exchange Commission for appropriate accounting and disclosure and concluded that there were no subsequent events requiring adjustment or disclosure in these consolidated financial statements, other than those discussed below.

 

In May 2013, the Company reached an agreement to borrow $5.0 million from an affiliate of the Company under a Subsequent Term Note. See Note 6 - Note Payable - Related Parties for additional information. The 2013 Term Loan will mature in November 2014 and may be prepaid at any time. The 2013 Term Loan will bear interest at a rate of 7% per annum, payable upon maturity and will be secured by all of the Company’s assets. The 2013 Term Loan will include cross default provisions with the existing 2012 Term Loan. If the Company does not close on the proceeds from this note, the Company will likely need to cease operations.