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Subsequent Event
6 Months Ended
Jun. 30, 2013
Subsequent Event

18. Subsequent Event

On August 14, 2013, the Company entered into a Factoring Agreement (the “Factoring Agreement”) with Variosystems, Inc. whereby Variosystems agreed to advance $200,000 to the Company on or before August 15, 2013, and an additional amount of up to $150,000 on or before December 31, 2013 at the request of the Company, but with the final authority and approval to pay at the final, irrevocable option of Variosystems.    

 

In consideration for agreeing to advance such funds to the Company, Variosystems will have the right to factor certain of the Company’s invoices at a rate of 15% of the gross amount due to Variosystems.  In addition, Variosystems will have a joint and equal security interest with Ardinger on all of the Company’s assets.

 

The term of the Factoring Agreement is open, and may be terminated by Variosystems at its sole discretion upon written notice to the Company.

 

On August 13, 2013, the Company terminated the Agreement with Amegy Bank National Association.