Quarterly report pursuant to Section 13 or 15(d)

Notes Payable and Interest Expense

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Notes Payable and Interest Expense
3 Months Ended
Mar. 31, 2015
Notes to Financial Statements  
Notes Payable and Interest Expense

Cherry Family Trust Note

 

This note was issued on March 1, 2007, for the principal amount of $20,000, interest accrues at the rate of 9% compounded annually, with a maturity date of December 31, 2008. Accrued interest was $0 and $17,769 as of March 31, 2015 and 2013, respectively. Although this note is currently past due, the Company is legally prohibited from paying it due to a court order dated December 7, 2007 related to a summary judgment in favor of the Company stemming from litigation between the Company and Mr. Cherry. Accordingly, we have extinguished the note payable and related accrued interest in the amounts of $20,000 and $16,943, respectively, during 2014 and recorded a gain on debt extinguishment of $36,943.

 

Interest Expense

 

Interest expense was $0 and $826 during the three months ended March 31, 2015 and 2014, respectively.