XML 31 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
Line of Credit and Notes Payable
12 Months Ended
Dec. 31, 2011
Line of Credit and Notes Payable [Abstract]  
LINE OF CREDIT and NOTES PAYABLE

NOTE I— LINE OF CREDIT and NOTES PAYABLE

On June 28, 2007 the Company secured a $1 million line of credit from a stockholder. This borrowing was amended to $1,300,000 as of September 30, 2008 under the same terms and conditions as the original. The $1.3 million Line of Credit was converted into shares of Milestone’s common stock in December 2009 at a conversion rate of $1.58 per share. A total of 822,785 shares were issued and the debt liquated at that date. Interest on the Line of Credit of aggregated $176,655 was accrued as of December 31, 2009. This interest will be paid in equal quarterly payments of $23,000 over the next two years. The Company borrowed an additional $450,000 from the same shareholder in 2008. The borrowing was originally on short term loan with a maturity date of January 19, 2009. In December 2008 and again on June 30, 2011, this borrowing was refinanced with the shareholder with a due date of July 13, 2013. The borrowing includes a twelve percent interest rate, interest compound quarterly, with interest and principle due at the maturity. Further, the note has warrants exercisable for five years at the price of $0.32 per share for 45,000 shares of stock. The warrants were valued using the Black-Scholes model and are reflected as a discount against the debt. At December 31, 2011, the discount was $3,065.

Interest expense on this Line of Credit for the year ended December 31, 2011 and 2010 was $77,722 and $95,135, respectively. Accrued interest related to this line of credit was $269,547 and $214,825 at December 31, 2011 and December 31, 2010, respectively. The charge for amortization of Debt Discount related to this Line of Credit is $5,296 and $2,796 for the year ended December 31, 2011 and December 31, 2010, respectively.