Notes and Short-term Receivables

12 Months Ended

Dec. 31, 2013

Notes and Short-term Receivables [Abstract]

Notes and Short-term Receivables

5.           Notes and Short-term Receivables

At December 31, 2013 and 2012, notes and short-term receivables, including accrued interest, consisted of:

	2013		2012
Note receivable - Vulcan	$	440,000	$	400,000	a.
Short-term note receivable - Cordellia		-		80,777	b.
Note receivable - Apel Design		-		16,578	c.
Total notes and short-term receivables	$	440,000	$	497,355

a.   On January 7, 2013, effective December 31, 2012, the Company, JV, and Vulcan entered into an agreement pursuant to which the JV Agreement was terminated.  As part of the termination agreement, Vulcan issued to the Company a 10% Secured and Collateralized Promissory Note in the principal amount of $400,000.  The interest rate will increase by 4% per annum if not paid by the maturity date.  The note has a maturity date of December 31, 2013.  Over the fiscal year of 2013, $40,000 of interest income was accrued for this note.

b.   As of December 31, 2012, the Company had overpaid a note payable to CDOO in the amount of $80,777.  This note receivable was charged to bad debt expense at June 30, 2013.

c.   The 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 June 30, 2013, the amount owed the Company by Apel Design including accrued interest was $17,471, and was charged to bad debt expense.