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Note Payable
6 Months Ended
Jun. 30, 2013
Note Payable

NOTE – 8 NOTE PAYABLE

Milestone borrowed $450,000 from a shareholder in 2008. The loan was originally a short term loan with a maturity date of January 19, 2009. In December 2008, May 30, 2012 and again on March 29, 2013, this loan was extended with the shareholder and the due date has been extended to January 5, 2015. The loan accrues interest at 12% per annum, interest compounds quarterly, and interest and principal is due at the maturity. Further, the lender was granted 45,000 warrants exercisable at $0.32 per share, which expired in 2012.

Interest expense for the three months ended June 30, 2013 and 2012 was $24,220 and $21,437, respectively. Interest expense for the six months ended June 30, 2013 and 2012 was $48,639 and $42,277, respectively. Accrued interest payable related to the note payable were $405,202 and $356,563 at June 20, 2013 and December 31, 2012, respectively. The Company had also secured a line of credit, from this shareholder, for $1.3 million which was converted into equity in 2009. However, the accrued interest remaining on the line of credit, which is included in accrued interest on notes payable in the condensed balance sheets, was not converted and the remaining balance at June 30, 2013 and December 31, 2012 was $75,795 and $72,672, respectively and accrues interest at 6%, per annum. For the three months ended June 30, 2013 and 2012, the charge for amortization of Debt Discount related to the outstanding line of credit is zero and $1,532, respectively. The charge for amortization of Debt Discount related to the outstanding line of credit is zero and $3,065 for the six months ended June 30, 2013 and June 30, 2012, respectively.