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7. LINE OF CREDIT - ROEN VENTURES
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6 Months Ended |
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Jun. 30, 2013
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| Debt Disclosure [Abstract] | |
| Line of Credit - Roen Ventures |
As discussed in Note 6 above, on March 1, 2013, the Company entered into a lending arrangement with Roen Ventures, which is owned 50% by the Company’s President and Chief Executive Officer who is also a director, Michael Mona, Jr. The Note issued to Roen Ventures provides a line of credit up to $4,000,000, bears interest at 5.0% and is unsecured. As previously disclosed in our Current Report on Form 8-K filed with the SEC on July 31, 2013, on July 25, 2013, the disinterested members of the Company’s Board of Directors approved an amendment to the terms of the Note to increase the line of credit to $6,000,000 and provide for the ability of Roen Ventures to convert, in its sole discretion, the outstanding balance of the Note into shares of the common stock of the Company at a conversion price to be determined following the conclusion of a valuation of the common stock of the Company. There are no specific repayment terms except that all unpaid principal and accrued interest under the Note is due and payable on July 25, 2015. As of June 30, 2013, the Company had a balance of $3,280,500 on this Note. Management has not yet determined the value of the conversion feature. |