6. NOTES PAYABLE

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements

6. NOTES PAYABLE

Notes payable as of September 30, 2011 and December 31, 2010 consist of the following:

	2011		2010
Stockholder
An unsecured loan from a stockholder which is payable on demand with interest at 12%.	$	116,000	$	116,000
Lafayette Community Bank
A term loan secured by a stockholder, payable in five monthly installments of $6,175 commencing December 25, 2009 with a balloon payment in the amount $175,630 due in May 2011.  Interest accrues monthly at 7% per annum.		130,935		142,042
Stockholder
Demand loan, dated September 18, 2009 and 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 became due and payable,  and is therefore in default.		50,000		50,000
Investor
Convertible promissory note payable on December 31, 2010 with interest at 8% per annum.  Upon meeting certain provisions the note can be converted to shares of common stock at $0.0033 per share.		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.		34,756		39,874
TOTAL	$	331,691	$	384,916
Less Current Portion		29,271		10,152
Non-Current Portion	$	301,970	$	374,764

Principal payments for the next five years are as follows:

2011	$	301,920
2012		10,758
2013		11,294
2014 and beyond		7,719
TOTAL	$	331,691