SHORT TERM LOANS

3 Months Ended

Mar. 31, 2012

Debt Disclosure [Abstract]

Short-term Debt [Text Block]

8. SHORT TERM LOANS

In 2011, the Company received six short-term loans from five different entities, in the aggregate amount of $1,329,465, bearing interest at rates ranging from 8% to 14%, per annum. In March 2012, the Company received another short-term loan in the amount of $200,000, bearing interest at the rate of 14%, per annum. Some of the short-term loans are secured by certain of the Company’s short term loans, pursuant to a security agreement, and are also personally guaranteed by our CEO. The outstanding balance of such loans as of both March 31, 2012 and December 31, 2011, is $1,159,465.

In 2011, Mr. Ran, our CEO, made four separate loans to the Company in amounts ranging from $20,000 to $100,000, at an interest rate of 12% per annum. All of these loans were repaid by the Company as of December 31, 2011. The aggregate interest expense for these loans was $455. During the first quarter of 2012, Mr. Ran made four short-term loans to the Company in amounts ranging from $50,000 to $115,000, bearing interest at rates ranging from 6% to 12%, per annum. At March 31, 2012, the outstanding balance of such loans is $265,000.

Subsequent to the balance sheet date, the Company repaid in full one of the loans in the amount of $200,000 and received two separate short-term loans from two different entities, in the aggregate amount of $390,000, bearing interest at rates ranging from 10% to 14%, per annum. In addition, Mr. Ran made two short-term loans to the Company in the aggregate amount of $55,000, bearing interest at the rate of 6%, per annum.