Related Party Notes Payable

9 Months Ended

Sep. 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 was due on December 31, 2012. During the nine months ended September 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 September 30, 2012 and December 31, 2011, the balance due to Vector amounted to $73,500. As of September 30, 2012 and December 31, 2011, accrued interest related to the Revolver amounted to $18,373 and $12,219, respectively, and is included in accrued interest, related party on the accompanying condensed consolidated balance sheets.

Interest expense for other related party notes payable amounted to $2,067 for the three months ended September 30, 2012, and $6,154 for the nine months ended September 30, 2012.