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Notes and Short-term Receivables
3 Months Ended
Mar. 31, 2012
Notes And Short-Term Receivables  
Notes and Short-term Receivables
4.      Notes and Short-term Receivables

At March 31, 2012 and December 31, 2011, notes and short-term receivables, including accrued interest, consist of:
 
   
2012
   
2011
       
Note receivable for annulment of Triple 8 investment
  $ 1,054,358     $ 1,269,000       a.  
Commercial note receivable, net of allowance
                       
  of $100,000
    50,900       50,900       b.  
Note receivable - Apel Design
    15,222       -       c.  
                         
   Total notes and short-term receivables
  $ 1,120,480     $ 1,319,900          
 
a.  
In connection with the Triple 8 annulment agreement, the Company has a short term receivable of $1,269,000 which requires monthly payments of $68,914 in January 2012, $73,214 per month from February 2012 through October 2012, and a final payment of $541,860 in November 2012.  This receivable bears no interest and is the remaining portion, after the initial payment of $732,000, of the total $2,001,000 that Triple 8 agreed to pay the Company under the annulment of the share purchase agreements.  For the three months ended March 31, 2012 the Company has received payments amounting to $214,642.
 
b.  
Note receivable from Fortune Market Media Inc. (“FTMK”), original principal of $150,000, interest at a 12% annual rate, maturing on February 13, 2012.  FTMK has defaulted on the loan and the Company has established a reserve for loan losses of $100,000.  In April and May 2012, the Company collected $10,000 and $12,500 in two separate wires. The Company has evaluated the loan impairment of the FTMK note based on relevant information about the ability of borrower to service its debt such as: current financial information, historical collections experience, credit documentation, public information and current economic trends.
 
c.  
Note receivable from Amit Apel Design, Inc. (“Apel Design”) original principal of $15,000, interest at a 12% annual rate, maturing on August 13, 2012. The note is secured by Apel Design’s inventory.