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LOANS PAYABLE
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9 Months Ended | ||||
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Sep. 30, 2014
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| Loans Payable [Abstract] | |||||
| Debt Disclosure [Text Block] |
Loans payable consist of notes payable to independent lenders and to a related party (see Note 11 – Related Party Transactions). Loans payable to independent lenders of $458,480 at December 31, 2013, consist primarily of two notes payable to a single lender. The first note dated March 4, 2011, was in the amount of $250,000, and bore interest at 8% per annum. The second note dated January 3, 2013, was in the amount of $200,000 and bore interest at 10% per annum. Both notes and the related accrued interest were converted into a deposit for the purchase of Series A Preferred on April 25, 2014.
Loans payable of $100,000 at September 30, 2014 consist of a single loan payable to an independent lender. Three loans aggregating $325,000 were issued during the nine months ended September 30, 2014. The first loan in the amount of $100,000, dated January 17, 2014, along with the related accrued interest, was converted into a deposit for the purchase of Series A Preferred on April 16, 2014. The second loan, in the amount of $100,000 is dated March 7, 2014, bears interest at 8% and is payable on demand any time after March 6, 2015. The third loan, in the amount of $125,000 was issued on July 25, 2014, and was converted to a deposit for the purchase of common stock as of September 11, 2014 and is included in the non-current portion of other liabilities received prior to the balance sheet date, and for which 62,500 common shares will be issued in the fourth quarter 2014 upon closing of the private placement.
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