Annual report pursuant to Section 13 and 15(d)

Long-Term Debt (Tables)

v2.4.0.8
Long-Term Debt (Tables)
12 Months Ended
Dec. 31, 2013
Debt Disclosure [Abstract]  
Components of Long-Term Debt
Long-term debt consisted of the following at December 31:
 
 
 
December 31,
2013
 
December
31, 2012
 
 
 
 
 
 
 
 
 
Note payable to an officer of the Company. The principal was not subject to a fixed repayment schedule, bore interest at 8% per annum and was secured by all of the assets of the Company
 
$
 
$
209,208
 
Note payable to an officer of the Company. The principal and interest was subject to a fixed blended repayment schedule of 36 months, commencing July 15, 2013. The loan bore interest at 12% per annum and was secured by a subordinated position in all the assets of the Company.
 
 
 
 
225,719
 
Note payable for research and development equipment. The principal is subject to a fixed semi-annual repayment schedule commencing October 31, 2012 over 48 months.
 
 
256,727
 
 
396,004
 
The note carries a 0% interest, but imputed interest has been accrued based on a 12% discount rate and is reflected as a reduction in the principal.
 
 
(71,701)
 
 
(97,003)
 
Convertible, Senior Secured Term Debt. The principal was to be repaid over 15 months, with equal payments of principal beginning on October 15, 2012. The Company did not make any of the required principal payments and was in default. The loan bore interest at 13.5%, per annum, which was payable monthly on the 15th of each month. The loan was secured by a first security position in all the Intellectual Property assets of the Company and a security interest in all of the other assets of the Company that was subordinate only to the security interest that secures the Company’s working capital loan.
 
 
 
 
619,122
 
Long-term secured deferred trade payable for which the principal and interest was subject to a fixed blended repayment schedule of 24 and 36 months, commencing July 15, 2013. The deferred trade payable bears interest at 12% per annum and was secured by a subordinated position in all the assets of the Company.
 
 
 
 
1,320,643
 
Note payable for which the principal and interest is subject to a fixed blended repayment schedule of 36 months, commencing July 15, 2013. The loan bears interest at 12% per annum and is secured by a subordinated position in all the assets of the Company.
 
 
84,790
 
 
101,748
 
 
 
$
269,816
 
$
2,775,441
 
Less: Amount Due Within One Year
 
 
(99,320)
 
 
(1,060,188)
 
Amount Due After One Year
 
$
170,496
 
$
1,715,253
 
Aggregate maturities for all long-term borrowings
The aggregate maturities reflect future cash principle payments exclusive of non-cash amortization discount for all long-term borrowings as of December 31, 2013 are as follows:
 
2014
 
2015
 
2016
 
2017
 
Thereafter
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
99,320
 
$
100,064
 
$
70,432
 
$
 
$
 
$
269,816