XML 51 R12.htm IDEA: XBRL DOCUMENT

Long-Term Debt - Related Party

6 Months Ended

Jun. 30, 2014

7. Long-Term Debt – Related Party

	June 30, 2014		December 31, 2013
Loan from HUK, payable in quarterly installments of $142,600, plus interest at UK prime plus 5% maturing on October 9, 2016, secured by licensing rights pursuant to the Sub-License Agreement.	$	1,425,500	$	1,657,400
		1,425,500		1,657,400
Less current maturities		570,200		552,500
	$	855,300	$	1,104,900

Maturities of debt for succeeding years are as follows:

Six months ended December 31, 2014	$	285,100
Year ended December 31, 2015	$	570,200
Year ended December 31, 2016	$	570,200

On April 18, 2013, KBEL entered into a Loan Agreement (the “Loan Agreement”) with HUK pursuant to which HUK provided KBEL with a secured term loan of £1,000,000 on October 9, 2013 to be repaid in twelve quarterly installment of £83,333.33 each, commencing from January 9, 2014 along with interest at the rate of 5% above the Bank of England base rate. Prepayment is permitted. Upon an Event of Default, as defined in the Loan Agreement, if HUK and KBEL fail to agree on a payment plan acceptable to HUK, HUK may, among other remedies, declare the loan immediately due and repayable or exercise its right to an exclusive license pursuant to the Sub-License Agreement as described and defined in the Loan Agreement.