NOTES PAYABLE

12 Months Ended

Dec. 31, 2011

Notes Payable [Abstract]

Notes Payable [Text Block]

10. NOTES PAYABLE

In connection with the Positive Access acquisition, the Company issued notes to the principals totaling $600,000, payable $400,000 at August 31, 2010 and $200,000 at August 31, 2011. The notes payable were initially recorded in the financial statements net of deferred debt discount of $40,000. The deferred debt discount was amortized on a straight line basis, which approximated the effective interest method. Total interest expense of $6,667 and $23,333 was recorded in the years ended December 31, 2011 and 2010, respectively.

The notes are shown net of the deferred debt discount for the years ended 2011 and 2010 were as follows:

	2011		2010
Gross	$	-	$	200,000
Deferred debt discount		-		(6,667	)
Net	$	-	$	193,333