Notes Payable, Long-Term Debt and Other Financing

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

Note 6. Notes Payable, Long-Term Debt and Other Financing

Notes payable consisted of the following at:

	March 31, 2013			December 31, 2012
Secured note payable to Credit Managers Association of California, bearing interest at prime plus 3% (6.25% as of March 31, 2013), and is adjusted annually in April through maturity. Principal and unpaid interest due in April 2016. A sinking fund escrow may be funded with 10% of future equity financing, as defined in the Agreement	$	1,238,000		$	1,238,000
Secured note payable to a Coca Cola Enterprises in the original amount of $40,000, bearing interest at 10% per annum. Principal and unpaid interest due on demand		40,000			40,000
Secured note payable to a financial institution in the original amount of $38,000, bearing interest at 8.25% per annum, payable in 60 equal monthly installments of principal and interest through February 19, 2014		8,000			11,000
Secured note payable to a financial institution in the original amount of $19,000, bearing interest at 10.50% per annum, payable in 60 equal monthly installments of principal and interest through August 25, 2014		7,000			8,000
Secured note payable to a financial institution in the original amount of $26,000, bearing interest at 7.91% per annum, payable in 60 equal monthly installments of principal and interest through April 9, 2015		12,000			14,000
Secured note payable to a financial institution in the original amount of $25,000, bearing interest at 7.24% per annum, payable in 60 equal monthly installments of principal and interest through March 10, 2016		17,000			17,000
		1,322,000			1,328,000
Less current portion of notes payable		(65,000	)		(66,000	)
Notes payable, net of current portion	$	1,257,000		$	1,262,000

As of March 31, 2013 and December 31, 2012, the balance of long term interest payable amounted to $1,339,000 and $1,318,000, respectively, of which the Credit Managers Association of California note amounted to $1,309,000 and $1,286,000, respectively. Interest expense on notes payable amounted to approximately $21,000 and $22,000 for the three months ended March 31, 2013 and 2012, respectively.