Notes Payable Related Party (Tables)

9 Months Ended

Sep. 30, 2012

Notes to Financial Statements

Schedule of Notes Payable to Related Party

		9/30/2012		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 $1,230,000. 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. On January 30, 2012, June 27, 2012 and September 26, 2012, Bluegate borrowed $15,000, $10,000 and $10,000, respectively for working capital purposes.	$	1,235,000	$	1,200,000