Notes Payable and Advances-related parties

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Notes Payable and Advances-related parties

Note 5. Notes Payable and Advances-related parties

 

Notes payable to unrelated parties consist of: 

	June 30, 2013		December 31, 2012
	(Unaudited)
Robert Shaw, $25,000 Promissory Note issued September 20, 2001; interest    rate 9% per annum, due December 20, 2001.		15		15
Ventana Medical Systems, Inc. $62,946 Promissory Note issued    November 30, 2003; due December 31, 2003; interest rate 8% per annum    payable after December 31, 2003		21		21
Xillix Technologies Corporation $361,000 Promissory Note issued    June 26, 1998; Interest rate Canadian Prime plus 6% per annum, due    December 27, 1999; represents a debt of AccuMed		—		34
	$	36	$	70

During the quarter ended June 30, 2013, the Company liquidated AccuMed, its wholly owned subsidiary. As a result, the note and accrued interest totaling $73,000 due to Xillex Technologies Corporation was recorded as a reduction in selling, general and administration expense.

The Company has failed to make principal and interest payments when due and is in breach of certain warranties and representations under the notes included above. Such notes require the holder to notify the Company in writing of a declaration of default at which time a cure period, as specified in each individual note, would commence. The Company has not received any written declarations of default from holders of its remaining outstanding notes payable.

During the six months ended June 30, 2013, the Company was advanced $145,000 from a related party. These advances are non-interest bearing and are due on demand. However, using an 8% annual interest rate, the Company has recorded a non-cash interest expense totaling approximately $94,000 on the outstanding balance for the quarter.