Note 6. Notes Payable Related Party

9 Months Ended

Sep. 30, 2011

Debt Disclosure [Text Block]

6. Notes Payable – Related Party.  Two $1,000,000 notes are payable under an unsecured loan agreement with Hayashibara Biochemical Laboratories, Inc. (“HBL”), a major stockholder, dated July 22, 1999.  Although we are currently in default on the notes, HBL has not demanded payment.

In 2010, the Company entered into a verbal agreement with Paul Tibbits, a Director, to purchase 12,000,000 warrants held by him for $200,000. On January 10, 2011 a promissory note in the amount of $200,000 was executed at an annual interest rate of 0.43%, with no stated maturity date, and no collateral.

On March 9, 2011, the Company entered into a promissory agreement with Paul Tibbits, a Director, for $20,000. A note was executed and includes interest at 0.54% per annum; the note is due upon demand, or if no demand is made, on September 11, 2011. The loan is in default, which requires interest to be accrued at 10%. No demand has been made as of the date of this filing.

On April 6, 2011, the Company entered into another promissory agreement with Paul Tibbits, a Director, for $40,000. A note was executed and includes interest at 0.54% per annum; the note is due upon demand, or if no demand is made, on October 8, 2011. The loan is in default, which requires interest to be accrued at 10%. No demand has been made as of the date of this filing.

On September 7, 2011, the Company entered into a promissory agreement with Paul Tibbits, a Director, for $10,000.  A note was executed and includes interest at 0.26% per annum, the note is due upon demand, or if no demand is made, on October 7, 2011. The loan is in default, which requires interest to be accrued at 10%. No demand has been made as of the date of this filing.