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Subsequent Events
12 Months Ended
Dec. 31, 2013
Notes to Financial Statements  
Note 15. Subsequent Events

On March 24 and 25, 2014, the Company issued promissory notes in the principal amounts of $100,000 and $36,000, respectively (“March Notes”), which March Notes were issued to certain accredited investors.  As additional consideration for the issuance of the March Notes, the holders thereof were issued 20,000 shares of our Common Stock for each $10,000 principal amount of the March Notes purchased, for an aggregate of 272,000 shares of Common Stock.  Each of the March Notes accrues interest at the rate of 8% annually, and is due and payable on June 30, 2014.  In addition, each of the March Notes voluntarily converts into our Common Stock at $0.08 per share in the event of the consummation of a qualified financing totaling at least $500,000 or, alternatively, in the event of the consumation of a qualified financing, holders may convert into the securities issued in connection with the qualified financing at 110% of the outstanding balance of the March Notes.

 

Management has reviewed and evaluated subsequent events and transactions occurring after the balance sheet date through the filing of this Annual Report on Form 10-K on April 15, 2014 and determined that no additional subsequent events occurred.