Notes and Short-term Receivables

9 Months Ended

Sep. 30, 2012

Receivables [Abstract]

Notes and Short-term Receivables

4.Notes and Short-term Receivables

At September 30, 2012 and December 31, 2011, notes and short-term receivables, including accrued interest, consisted of:

 

	2012		2011
Note receivable for annulment of Triple 8 investment	$	615,074	$	1,269,000	a.
Commercial note receivable, net of allowance
of $100,000		-		50,900	b.
Note receivable - Apel Design		16,124		-	c.
Total notes and short-term receivables	$	631,198	$	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 nine months ended September 30, 2012 the Company has received payments amounting to $653,926.

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 had defaulted on the loan and the Company had established a reserve for loan losses of $100,000 at December 31, 2011. During the nine months ended September 30, 2012 the Company collected the entire amount of the original receivable plus accrued interest. At September 30, 2012 the Company has reflected the reversal of the $100,000 allowance for credit losses that had been established as other income in the accompanying financial statements.

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. Subsequently, the parties agreed to extend the maturity of the note to December 31, 2012. The note is secured by Apel Design’s inventory. As of September 30, 2012, the amount owed the Company by Apel including accrued interest is $16,124.