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Notes Payable
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3 Months Ended |
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Mar. 31, 2013
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| Notes Payable [Abstract] | |
| Notes Payable |
8. Notes Payable As of March 31, 2013, no notes payable are outstanding. As part of our reorganization in connection with our initial public offering, we entered into a debt exchange agreement with the three founders of the Company, whereby three outstanding promissory notes in the principal amounts of $1,341,676, $142,000 and $37,143 plus accrued interest owed to them, respectively, were exchanged for 168,982, 28,851 and 7,547 shares of common stock, respectively, at a price per share equal to the initial public offering price, which was $8.00 per share. This transaction was exempt from registration pursuant to Section 4(2) of the Securities Act of 1933, as amended (the "Securities Act"). At December 31, 2012, Notes Payable included the three notes described above. The interest rate on the notes was 6% per annum, with all unpaid interest and principal due on November 1, 2014. The Company assumed one of such notes payable at an acquisition date fair value of $692,614 and a face value of $1,341,676. The discount on the note was recorded at 6.055%. The remaining unamortized discount was $0 and $138,256 at March 31, 2013 and December 31, 2012, respectively. The balance on this note was $0 and $1,199,703 at March 31, 2013 and December 31, 2012, respectively. The second note payable, including accrued but unpaid interest, was $0 and $228,443 at March 31, 2013 and December 31, 2012, respectively. The third note payable was in the amount of $0 and $59,753 at March 31, 2013 and December 31, 2012, respectively. The total notes payable including accrued but unpaid interest amounted to $0 and $1,487,899 as of March 31, 2013 and December 31, 2012, respectively. Interest expense on these note obligations amounted to $155,137 and $45,037 for the three months ended March 31, 2013 and 2012, respectively. Interest expense includes the amortization of the debt discount of $138,256 and $17,200 for the three months ended March 31, 2013 and 2012, respectively. Payments on the notes were $0 and $48,000 for the three months ended March 31, 2013 and 2012, respectively. |