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Notes Payable – Stockholders
12 Months Ended
Dec. 31, 2015
Debt Disclosure [Abstract]  
Notes Payable – Stockholders

5.     Notes Payable – Stockholders

 

Effective July 2, 2007, the Company entered into a note payable agreement with a related party that provides for borrowings up to the principal amount of $64,871.  The note is uncollateralized and bears interest at an annual rate of 8%.  The Company issued 37,839 (945,987 pre-split) shares of its common stock as additional consideration for the note payable.  As of December 31, 2015, the outstanding balance of the note payable was $64,871.  The original due date of June 30, 2008 was extended to June 30, 2009, and effective June 30, 2009, the stockholder agreed to modify the terms of the note to make it due on demand.

 

Effective November 14, 2007, the Company entered into a revolving convertible loan agreement with the President and a stockholder.  The agreement provides for borrowings up to the principal amount of $133,333.  The note is due on demand, is uncollateralized, bears interest at an annual rate of 8%. As of December 31, 2015 and 2014, outstanding borrowings under the agreement totaled $133,395.

 

During the years ended December 31, 2015 and 2014, the Company accrued interest expense of $15,861 and $16,158, respectively, on the two notes payable to stockholders. Accrued interest payable to these stockholders totaled $106,336 and $90,475, at December 31, 2015 and 2014, respectively.