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10. SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2013
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

On July 16, 2013, the Company executed two settlement agreements with Caesar Capital Group, LLC and ARRG Corp., related to convertible promissory notes executed on June 9, 2011, and subsequently assigned to Secure eHealth, LLC as part of an Assignment and Assumption agreement dated December 29, 2011. Secure eHealth, LLC was a subsidiary of the Company until December 29, 2011, at which point it was sold to HEB, LLC and Commercial Holding AG, LLC as part of a membership purchase agreement. According to the terms of the July 16, 2013 settlement agreements the Company has established two $45,000 notes payable: one to Caesar Capital Group, LLC and one to ARRG Corp. The notes, which mature April 14, 2014, accrue interest at 8% per annum and are convertible 180 days after the issue date at a price per share equal to 80% of the fair market value of common stock. In consideration for the notes, Caesar Capital LLC and ARRG Corp., fully and forever release, discharge and acquit the Company from and against any and all claims pertaining to the June 9, 2011 note agreements and December 29, 2011 Assignment and Assumption agreement.

 

In July of 2013, the Company issued 100,000 shares of common stock to a consultant according to the terms of the engagement agreement and 304,361 shares were issued in conversion of $13,848 of unrelated party debt. The Company issued 102,459 shares of common stock to Tonaquint as part of the extension agreements (see Note 3 “Significant Transactions”). Additionally, the Company issued a total of 250,000 shares of common stock to four sales representatives as part of a sales incentive program.

 

On July 25, 2013, the Company made the $5,000 principal payment plus accrued interest due on the June 24, 2013 Promissory Note.

 

On August 1, 2013, the Company, acting as collateral agent under the terms of the Private Access Note agreement (see Note 4 “Notes Receivable”), consented to extend the maturity date of the secured convertible promissory note obligations, including the Company’s own $1,500,000 note receivable issued by Private Access, to February 1, 2014.

 

On August 2, 2013, the Company received an additional $66,804 in funding on the May 13, 2013 Promissory Note.

 

The Company has evaluated all subsequent events from the balance sheet date through the date of this filing and with the exception of the items mentioned above there are no events to disclose.