Debt

6 Months Ended

Jun. 30, 2013

Debt:

Schedule of Line of Credit Facilities

6.        LINE OF CREDIT FROM DIRECTOR/ OFFICER

On May 29, 2013, the Company entered into a Revolving Loan Agreement and associated Revolving Promissory Note (collectively the “ Loan Documents ”) with Zack Bergreen, the Company’s Chief Executive Officer.  Pursuant to the Loan Documents, Mr. Bergreen will provide an unsecured $2,000,000 revolving line of credit to the Company (“ Line of Credit ”).  Amounts outstanding under the Line of Credit bear interest at a rate of 7% per annum, payable monthly.  The maturity date of the Line of Credit is May 29, 2015.   The Company may pay all amounts outstanding and terminate the Loan Documents prior to that time without any penalties.  The Loan Documents contain customary covenants, default and other provisions.  The Loan Documents were negotiated  and approved by  the Audit Committee of the Company’s Board of Directors.  Borrowings under the Line of Credit are subject to the Audit Committee’s approval.  The proceeds of the borrowings will be used by the Company for working capital and general corporate purposes. As of June 30, 2013 the Company borrowed $1,600,000 against the line of credit and incurred $7,000 in interest expense.