Annual report pursuant to section 13 and 15(d)

6. Prepaid Expenses and Other Current Assets

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6. Prepaid Expenses and Other Current Assets
12 Months Ended
Dec. 31, 2013
Notes to Financial Statements  
6. Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following at December 31, 2013 and December 31, 2012:

 

    2013     2012  
Prepaid insurance   $ 63,737     $ 44,390  
Other prepaid expenses     404,818       308,631  
Escrowed funds – senior lenders     2,000,000       -  
Due from Prestige (see note 4)     236,232       648,428  
Total   $ 2,704,787     $ 1,001,449  

 

The $2.0 million of escrowed funds pertain to a portion of the funds the Company deposited into an account controlled by the Company’s senior lenders, as more fully described in note 11, pending receipt of certain regulatory approvals for the pledging of assets related to the debt incurred to finance the acquisition of the Broadvox Assets (see note 3). The funds will remain in escrow until such time as the necessary regulatory approvals are obtained. The Company expects to receive all such approvals during the second quarter of 2014, at which time the funds will be returned to the Company, subject to the terms contained in the loan documents governing the Company’s senior debt.