Quarterly report pursuant to Section 13 or 15(d)

Notes Payable

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Notes Payable
 3 Months Ended
Mar. 31, 2014
Notes Payable [Abstract]  
Notes Payable
Note 13 - Notes Payable
 
Notes payable and accrued interest as of March 31, 2014 and December 31, 2013 consisted of the following:
 
   
March 31,
2014
    
December 31,
2013
  
a)   Note payable dated July 1, 2008                                                               
   $ 108,566     $ 208,566  
b)  Note payable dated August 31, 2013
     478,629       514,476  
                 
Totals                                                               
   $ 587,195     $ 723,042  
 
a)  
Note payable dated July 1, 2008
 
On July 1, 2008, the Company entered into a note payable for gross proceeds of $515,233.  The note has no stated interest rate or repayment terms and matured on July 31, 2012.  Effective December 31, 2013, that arrangement has been amended and the maturity date was revised to March 31, 2014.  This note was paid in full on April 15, 2014.
 
b)  
Note payable dated August 31, 2013
 
On August 31, 2013 the Company entered into an Agreement and Plan of Merger to acquire Shoom for a purchase price of $2,500,000, including $500,000 deposited in escrow, which is listed as restricted cash of $71,429 and restricted cash – net of current portion of $428,571, for the Shoom acquisition of which any amounts not subject to claims shall be released to the Shoom Shareholders, on a pro-rata basis, on each of the seven (7) anniversary dates of the Closing Date in seven equal installments, and 2,762,000 shares of common stock. Pursuant to the terms of the Shoom agreement, the delivery of the Shoom Consideration to each stockholder was subject to the return of certain documentation thus the Company initially recorded the cash consideration to be paid as a non-interest bearing note in the amount of $2,500.000.  As of March 31, 2014, $478,629 was still payable to the Shoom Shareholders and was recorded by the Company as a note payable with no interest accruing.  Post-acquisition the Shoom Shareholders collectively own approximately 8% of the Company.