On September 13, 2011, the Bank of North Dakota New Venture Capital Program provided a working capital loan to the Company in exchange for a promissory note in the amount of $125,000.  It is a demand note, but if no demand is made, the Company shall make quarterly interest payments beginning December 31, 2011 at a fixed interest rate of 6% and continuing on a quarterly basis until maturity.  The loan matures on September 30, 2014.  $75,000 has been advanced on the loan as of June 30, 2013.  Interest expense for the six months ended June 30, 2013 and 2012, respectively was $2,263 and $2,275.

On September 13, 2011, the Bank of North Dakota Development Fund, Inc. provided a working capital loan to the Company in exchange for a promissory note in the amount of $125,000.  It is a demand note, but if no demand is made, the Company shall make quarterly interest payments beginning December 31, 2011 at a fixed interest rate of 6% and continuing on a quarterly basis until maturity.  The loan matures on September 30, 2014.  $75,000 has been advanced on the loan as of June 30, 2013.  Interest expense for the six months ended June 30, 2013 and 2012, respectively was $2,263 and $2,275.

Effective June 30, 2013, Tucker Ellis LLP accepted a promissory note in the amount of $300,000 from the Company in exchange for outstanding billings due of the same amount.  Per the terms of the promissory note, the Company is required to pay the remaining outstanding invoices payable balance to Tucker Ellis LLP on or before August 31, 2013.  As of June 30, 2013, the Company’s payables balance due to Tucker Ellis LLP was $124,822.  The Company shall make quarterly interest payments beginning September 30, 2013 at a fixed interest rate of 5% and continuing on a quarterly basis until maturity.  The Company is require to make principal payments pursuant to the agreement based on the issuance of debt or equity securities.  The promissory note matures on June 30, 2015.