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Note 14 - Subsequent Events
12 Months Ended
Dec. 31, 2014
Subsequent Events [Abstract]  
Note 15 - Subsequent Events

Note 15 – Subsequent Events

 

In April, 2015, the Company executed a lease that commenced on May 1, 2015 for office space located in Davie, Florida. The lease has monthly payments of $954 per month for a six month term and has an option to extend for another six month term.

 

In 2015, the Company borrowed from accredited investors and related parties (the “Debenture Holders”) $212,000 ($15,000 was provided by the Interim CEO and CFO, and $25,000 was provided by board member Les V. Anderton) pursuant to an Unsecured Redeemable Debenture Series F (the “Series F Debentures”) that will pay interest during the Debenture term in the amount of 10% of the principal amount. The holders of the Series F Debentures also received warrants to acquire 212,000 shares of Common Stock for an exercise price of $0.15 per share, exercisable over three years equal to 100% of the principal amount of the debenture. In addition the Company will issue the Debenture Holders warrants (the “2015 Warrant”) to purchase 212,000 shares of the Company’s Common Stock at a price per 2015 Warrant Share to be determined. The Company incurred no commission costs in connection with these transactions.

 

Effective Januray 1, 2015, through a new credit agreement Les Anderton's line of credit to the Company was increased to $1.5 million and extended to the earlier of December 31, 2015, or the closing of a Company financing with gross proceeds of at least $5 million. The line of credit will be used to fund working captial needs. No draws have been made on the line of credit.