Related Party Notes Payable

6 Months Ended

Jun. 30, 2012

Related Party Notes Payable [Abstract]

Related Party Notes Payable

6.           Related Party Notes Payable

On March 26, 2009, the Company entered into a $50,000 revolving credit promissory note (the “Revolver”) with Vector Group Ltd. (“Vector”), a principal stockholder of the Company. The loan bears interest at 11% per annum and is due on December 31, 2012. Subsequent to June 30, 2012, the Revolver was extended for a year, with a maturity date of December 31, 2013. On January 26, 2011, the Company and Vector entered into an amendment to the Revolver increasing the amount that the Company may borrow from $50,000 to $100,000. As of June 30, 2012 and December 31, 2011, the balance due to Vector amounted to $73,500. As of June 30, 2012 and December 31, 2011, accrued interest related to the Revolver amounted to $16,306 and $12,219, respectively.

Interest expense for other related party notes payable amounted to $2,043 for the three months ended June 30, 2012, and $4,087 for the six months ended June 30, 2012.