XML 36 R24.htm IDEA: XBRL DOCUMENT v2.4.0.6
Notes Payable Related Party (Tables)
12 Months Ended
Dec. 31, 2012
Note Payable To Related Party  
Schedule of Notes Payable to Related Party
    12/31/2012   12/31/2011

Secured note payable to related party: During 2007, the Company entered into a line of credit agreement with SAI Corporation ("SAIC"), a corporation controlled by our CEO, Stephen J. Sperco, to borrow up to $500,000. The line of credit has been amended several times due to Bluegate’s need to borrow funds for working capital purposes and has been increased to $1,250,000. As a condition to and as additional consideration for SAIC’s agreement to lend additional funds to the Company, the Company granted SAIC a security interest in its assets as more specifically detailed in the Promissory Note and Security Agreement. Principal and interest is due on demand. Interest is at the rate of 15% per annum and payments are due and payable monthly at the end of each month until the outstanding principal balance is paid in full. The Company agreed to pay a late charge in the amount of $10,000 on any interest payment more than fifteen days delinquent. During 2012, Bluegate borrowed $45,000 for working capital purposes.

 

$ 1,245,000 $ 1,200,000