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Commitments and Contingencies
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6 Months Ended | |||||
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Jun. 30, 2013
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| Commitments and Contingencies [Abstract] | ||||||
| Commitments and Contingencies |
Note 7 - Commitments and Contingencies
Revolving Credit Facility
On January 31, 2008 the Company entered into a revolving credit line with a bank. The credit facility provides for $100,000 at prime plus .5%, 3.75% at June 30, 2013, and is secured by all assets of the Company and personally guaranteed by the Company’s principal shareholder. As of June 30, 2013, the Company owed $100,292 under this agreement.
Loan Payable
On August 4, 2010, the Company entered into a note payable with Systems Trading, LLC in settlement of past due balances owed to SafeData related to certain capital leases. The note bears interest at 4%, and is due in 24 equal installments of $11,927 commencing February 4, 2011 through January 4, 2013. The note payable is in arrears and has a balance as of June 30, 2013 of $47,335
Operating Leases
The Company currently leases office space in Garden City, NY and Warwick, RI.
The lease for office space in Warwick, RI calls for monthly payments of $5,400 plus a portion of the operating expenses beginning in April 2012 and ending in December 2012. We are currently operating under a month to month agreement.
The lease for office space in Garden City, NY calls for escalating monthly payments ranging from $6,056 to $6,617 plus a portion of the operating expenses through June 2014.
Minimum obligations under these lease agreements are as follows:
Rent expense for the six months ended June 30, 2013 and June 30, 2012 was $73,071 and $106,757 respectively.
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