Quarterly report pursuant to sections 13 or 15(d)

4. Notes Payable (Tables)

v2.4.0.8
4. Notes Payable (Tables)
 6 Months Ended
Jun. 30, 2013
Debt Disclosure [Abstract]  
Black-Scholes valuation for the warrants

 

 

The warrants were valued in the amount of $379,688, based on the Black-Scholes valuation using the following assumptions:

 

Risk-free interest rate 0.73%
Expected life in years 5
Dividend yield 0
Expected volatility 63.65%

 

Debt Discount for the convertible feature of the debenture was valued in the amount of $269,284 using the Black-Scholes calculation with the following assumptions:

 

Risk-free interest rate 0.31%
Expected life in years 2
Dividend yield 0
Expected volatility 60.01%

 
Notes payable and accrued interest

As of June 30, 2013 and December 31, 2012, the Company had the following notes payable and accrued interest balances outstanding:

 

    6/30/2013     12/31/2012  
Debenture - $1,000,000 16% senior secured convertible   $ 1,000,000     $ 1,000,000  
Debt Discount     (322,903 )     (485,147 )
Total Notes Payable     677,097       514,853  
Less:  Current Portion     677,097       –  
Long Term Portion   $ –     $ 514,853  
Accrued Interest                
Debenture - $1,000,000 16% senior secured convertible Issued June 27,2012   $ 26,667     $ 26,667  
Debenture - $2,500,000 Terminated June 2009     19,049       19,049  
Accrued Interest - Current Portion   $ 45,716     $ 45,716  
Schedule of Maturities of long-term debt

 

Fair market values of the Company's derivatives as of June 30, 2013 were based on the Black Scholes valuation using the following assumptions:                        

 

Maturities requirements on long-term debt subject to mandatory redemption are as follow:

 

2013   $ 250,000  
2014     750,000  
2015     –  
2016     –  
2017     –  
Total   $ 1,000,000