Quarterly report pursuant to Section 13 or 15(d)

Bridge Financing, Notes Payable, Accrued Interest and Cash Payment Obligation (Tables)

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Bridge Financing, Notes Payable, Accrued Interest and Cash Payment Obligation (Tables)
3 Months Ended
Mar. 31, 2013
Bridge Financing Notes Payable Accrued Interest And Cash Payment Obligation Tables  
Schedule of outstanding new Bridge Notes

The following table summarizes information relative to the outstanding new Bridge Notes at March 31, 2013 and December 31, 2012:

 

    March 31, 2013     December 31, 2012  
Bridge notes payable   $ 4,521,378     $ 4,342,418  
Less unamortized discounts:                
VMCO     (84,547 )     (481,390 )
ASID     (199,198 )     (1,003,359 )
Bridge notes payable, net of discounts   $ 4,237,633     $ 2,857,669  
Company's discounts to its Bridge Notes

The following table presents details of the Company’s discounts to its Bridge Notes from December 31, 2011 to March 31, 2013:

 

    VMCO     ASID     Total  
December 31, 2011   $ (12,031 )   $ (47,739 )   $ (59,770 )
Additions     (1,409,797 )     (3,942,607 )     (5,352,404 )
Amortization     940,438       2,986,987       3,927,425  
December 31, 2012     (481,390 )     (1,003,359 )     (1,484,749 )
Additions     (29,451 )     (104,274 )     (133,725 )
Amortization     426,294       908,435       1,334,729  
March 31, 2013   $ (84,547 )   $ (199,198 )   $ (283,745 )
Summary of Notes Payable and Accrued Interest

The following table summarizes the Company’s notes payable and accrued interest as of March 31, 2013 and December 31, 2012:

 

    Notes Payable     Accrued Interest  
    March 31, 2013     December 31, 2012     March 31, 2013     December 31, 2012  
Bridge notes, net, as discussed above   $ 4,237,633     $ 2,857,669     $ 364,741     $ 261,213  
                                 
Convertible notes payable, net of discounts     4,237,633       2,857,669       364,741       261,213  
                                 
Unsecured (as amended) note payable due to our Company’s former Chief Executive Officer, interest accrues at the rate of 9% compounded annually, all amounts due and payable December 31, 2008. Currently past due.     20,000       20,000       14,530       13,775  
                                 
Note payable due to a trust, interest accrues at the rate of 10% per annum, all amounts due and payable December 31, 2006.  The Company is negotiating the terms of this note. Currently past due.     51,984       51,984       25,579       24,297  
                                 
Digimark, LLC subordinated promissory note, net, as discussed above. Currently past due.     100,000       100,000       24,549       22,083  
                                 
Notes payable     171,984       171,984       64,658       60,155  
                                 
Totals   $ 4,409,617     $ 3,029,653     $ 429,399     $ 321,368  
Interest Expense

The following table summarizes interest expense for the three months ended March 31, 2013 and 2012:

 

    Three months ended March 31,  
    2013     2012  
Amortization of note discounts   $ 1,334,729     $ 277,349  
Amortization of deferred financing costs     -       35,154  
Other interest expense     112,630       45,675  
    $ 1,447,359     $ 358,178