Related Party Transactions

12 Months Ended

Dec. 31, 2013

Related Party Transactions [Abstract]

Related Party Transactions

14. Related Party Transactions

In March 2002 the Company executed a binding agreement with its CEO, who is also a principal stockholder, to fund up to $6.1 million. Under the terms of the agreements, the Company can draw amounts as needed to fund operations. Amounts drawn bear interest at the BBA LIBOR Daily Floating Rate plus 1.4 percentage points (2.305% per annum at December 31, 2013), payable monthly and were to become due and payable on December 31, 2005 or upon a change in control of the Company or consummation of any other financing over $7.0 million. Beginning in March 2006, annually, through February 2012, the maturity date for the agreement was extended from December 31, 2007 to December 31, 2013.  Refer to Note 8.

The Company has loans outstanding from one board member, who is also a significant stockholder, totaling $0 and $125,000 at December 31, 2013 and 2012. During both 2013 and  2012,  this board member loaned the Company $25,000.  On February 13, 2013 the Company issued 882,353 shares of its common stock valued at $0.17 per share as payment for the outstanding balance of $150,000 due from this stockholder,  who is also a director. On April 8, 2013 the Company issued 50,656 shares of its common stock valued at $0.18 per share as payment for the interest, in the amount of $9,118, on the $150,000 note payable  This stockholder and board member is also the President of a separate entity that provided consulting services to the Company in 2013 and 2012.  Please refer to Notes 8 and 10.