NOTES PAYABLE

12 Months Ended

Dec. 31, 2012

Notes Payable [Abstract]

Notes Payable

10. NOTES PAYABLE

On January 17, 2012, the Company assumed from MIT a note payable with Los Alamos National Bank (“LANB”) in the amount of $700,000. On February 10, 2012, MIT refinanced with LANB the principal and accrued interest of this note payable with a promissory note of $708,000, maturing on April 1, 2019. The monthly payment to LANB on the promissory note is $10,000, with the interest rate of 5.5% at December 31, 2012. The promissory note is guaranteed by the Company and secured by all assets of the Company. Total interest expense 2012 related to the promissory note recorded during the year ended December 31, was $35,000 during. The note outstanding principal amount and accrued interest as of December 31, 2012, were approx. $649,000 and $3,000, respectively.

From time to time, the company receives advances from unrelated parties. These advances are unsecured, bear interest at 8% and there are no specific repayment terms. During the twelve months ended December 31, 2012, the Company received advances and made repayments of these advances in the amounts of $305,000 and $265,000, respectively. During the year ended December 31, 2012, the Company recorded interest expense related to the advances of $1,600, which remained unpaid as of December 31, 2012. As of December 31, 2012, and 2011 the amounts due to the unrelated parties were $40,000 and $0, respectively.

Future maturities of notes payable are as follows:

Debt maturities as of	December 31,
2013	$	129,000
2014		94,000
2015		98,000
2016		105,000
2017		110,000
2018 and thereafter		153,000
Total		689,000
Less: current portion		(129,000	)
Notes payable – noncurrent portion	$	560,000