RELATED PARTY TRANSACTION

12 Months Ended

Dec. 31, 2014

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTION

Note 13 RELATED PARTY TRANSACTION

We recognized interest expense of approximately $620,000 and $616,000 during 2014 and 2013, respectively, in connection with loans from related parties of the Company.

Employment agreement with Chief Executive Officer and Directors compensation - In accordance with the employment agreement between the Company and our Board Chairman and CEO, Clark Marcus, we are obligated to pay to Mr. Marcus a total of approximately $10.9 million in base salary over the next five years. In addition, we will pay on his behalf approximately a total of $68,000 in health insurance premiums and $603,000 in life insurance premiums, also over the next five years. This compensation may, at our election, be only accrued but not paid, in whole or in part, until such time as we receive financing and/or generate sufficient cash flows, after the payment of our operating expenses, with which to pay Mr. Marcus his agreed compensation.

In the event Mr. Marcus’ employment is terminated without cause, or Mr. Marcus voluntarily terminates his employment within one year following a change in control, if any, we will be obligated to pay to Mr. Marcus any accrued but unpaid bonuses and the total compensation that would have been paid to him for five full years following the date of termination. In connection with this employment agreement, we have accrued compensation payable of $ 1,640,280 and $832,479 included in accrued expenses as of December 31, 2014 and 2013, respectively.