RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2015

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

In February 2015, the Company completed the closing of a private placement financing transaction with Infinity Capital,which purchased a senior secured note (the “Infinity Note”) from the Company in the principal amount of up to $300,000, as amended in April 2015. Infinity Capital agreed to make advances to the Company from time to time in amounts not to exceed the maximum principal amount.  The balance of the Infinity Note was approximately $289,000 on June 30, 2015. For the three and six-month periods ended June 30, 2015, interest expense was approximately $400 and $3,000, respectively, all of which was interest payable at June 30, 2015. On July 1, 2015, the outstanding balance of $309,000 was converted to a 10% Note. The Company has since been advanced additional amounts under the terms of the Infinity Note (see Note 16).

Interest on the Infinity Note accrues at 5.0% on the then-outstanding principal amount is payable monthly in arrears commencing June 30, 2015, until the note’s maturity date on August 31, 2015.  The Infinity Note may be prepaid at any time upon 5 business days’ notice to Infinity Capital.  As collateral for payment of the Infinity Note, the Company granted Infinity Capital a lien and security interest in substantially all of the Company’s business assets and property.  The Company believes that the arrangement was on terms that were at least as favorable as it could have obtained from third parties.