5. Notes Payable

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

5. Notes Payable

5.             NOTES PAYABLE

Notes payable as of December 31, 2011 and December 31, 2010 consists of the following:

	2011		2010
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.		119,079		142,042
Stockholder
Demand loan payable with interest at 5% per month dated September 18, 2009. The loan is secured by the Company’s accounts receivable.  The note was payable in full on December 17, 2009 so this debt is currently in default.		50,000		50,000
Stockholder
Convertible promissory note payable on December 31, 2010 with interest at 8% per annum.  Upon meeting certain provisions the note could be converted to shares of common stock at $0.0033 per share which it did in 2011 to pay the loan in full.		0		37,000
Chase
Equipment loans to finance the purchases of two trucks, payable monthly in installments of $1,003, which include interest at 5.34% per annum.  During 2011 one truck was disposed of and the debt was reduced accordingly		18,977		39,873
TOTAL	$	304,056	$	384,915
Less current portion		200,628		374,764
Non-current portion	$	103,428	$	10,151

Principal payments for the next five years:

2012	$	200,628
2013		30,895
2014		30,927
2015		28,909
2016		12,697
Thereafter		0
TOTAL	$	304,056