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Line of Credit and Note Payable
9 Months Ended
Sep. 30, 2013
Line of Credit and Note Payable

NOTE – 8 LINE OF CREDIT AND 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. The loan ($450,000) and related interest ($333,907) was converted to common stock on August 8, 2013. Further, the lender was granted 45,000 warrants exercisable at $0.32 per share, which expired unexercised in 2012.

Interest expense for the three months ended September 30, 2013 and 2012 was $5,550 and $36,497, respectively. Interest expense for the nine months ended September 30, 2013 and 2012 was $70,119 and $142,217, respectively.  The Company had also secured a line of credit, from this shareholder, for $1.3 million which was converted into equity in 2009. The accrued interest, of $76,174, on the line of credit was converted to common stock on August 8, 2013.  For the three months ended September 30, 2013 and 2012, the charge for amortization of Debt Discount related to the outstanding line of credit is zero. The charge for amortization of Debt Discount related to the outstanding line of credit is zero and $3,065 for the nine months ended September 30, 2013 and September 30, 2012, respectively.