4. NOTES PAYABLE

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

4. NOTES PAYABLE

4. NOTES PAYABLE

Notes payable as of June 30, 2013 and December 31, 2012 consists of the following:

	June 30, 2013		December 31, 2012
Stockholder An unsecured loan from a stockholder which is payable on demand with interest at 12%. The note was dated November 1, 2007, and the note matures and the principal is payable upon the demand of the lender.	$	116,000	$	116,000
Lafayette Community Bank A term loan secured by a stockholder, payable in monthly installments of $2,587 commencing in December 25, 2009 but refinanced in May 2011. The loan is due in full on May 18, 2016. Interest accrues monthly at 7.5% per annum.		85,120		97,185
Stockholder Demand loan payable with interest at 5% per month. The loan is secured by the Company’s accounts receivable. The note payable matured on December 17, 2009 at which the debt became due and payable and therefore currently in default.		50,000		50,000
Investor An unsecured loan from an investor, payable in monthly installments of $5,000 commencing July 1, 2013 until paid in full. The loan bears no interest and is the amount due as a result of a settlement of the stock settlement payable mentioned below.		75,000
Chase A secured loan to finance the purchase of a truck, payable monthly in installments of $533, which includes interest at 5.34% per annum.		7,143		10,104
TOTAL	$	333,263	$	273,289
Less current portion		262,689		197,058
Non-current portion	$	70,574	$	76,231

Principal payments for the next five years ending June 30:

2014	$	262,689
2015		38,486
2016		29,643
2017		2,445
Thereafter		0
TOTAL	$	333,263