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NOTES PAYABLE AND LINE OF CREDIT - RELATED PARTY
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9 Months Ended | ||
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Jun. 30, 2011
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| Debt Disclosure [Abstract] | |||
| Debt and Capital Leases Disclosures [Text Block] |
Notes Payable
On November 23, 2010, we initiated a private placement (the “Placement”) of up to $3,000 of 12 month Senior Secured Notes (“Notes”) with warrants to purchase 150 shares of Beacon’s common stock at $0.40 per share for every $1 in principal invested and bear interest at 9% APR due on various dates through March 30, 2012. The Placement was made on a "best efforts" basis with a Minimum of $600 and a Maximum of $3,000. Net proceeds have been used to repay and replace an existing Senior Secured Bank Note totaling approximately $300 and will also be used for additional working capital. The Placement expired on March 30, 2011, when the Maximum was attained. The notes are secured by all business assets of the Company, as defined. As of June 30, 2011 we have issued $3,000 of notes, 449,999 warrants and have recorded interest expense of $124. We incurred financing fees of $333 which have been recognized as deferred finance fees as part of prepaid expenses and are be amortized ratably over the life of the debt.
Using the Black-Scholes model we have determined the fair value of the issued warrants to be $205 and allocated the debt proceeds in accordance with the relative fair value method. The notes payable have been recorded on the condensed consolidated balance sheet as of June 30, 2011 at $2,905 which is net of the discount representing the allocation of the $180 relative fair value to the warrants. For the three and nine months ended June 30, 2011, we recorded interest of $48 and $85, respectively in the condensed consolidated statements of operations as accretion of the note discount.
Long Term Line of Credit – Related Party
On August 17, 2010 we entered into a long term line of credit facility, with a term of up to 18 months, with one of our directors for $4,000. The facility has an annual interest rate of 7.73% on any outstanding balance Additionally, 15,000 warrants, with a five year term at $1.00 per share, per month will be paid for each month the facility is outstanding. As of June 30, 2011, we have issued 165,000 warrants. Using the Black Scholes pricing model, we determined the fair value of the warrants and recorded as other expense of $11 and $71, respectively for the three and nine months ended June 30, 2011. As of June 30, 2011, we do not have an outstanding balance under this facility.
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