11. RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements

11. RELATED PARTY TRANSACTIONS

 During the periods reflected on this report certain shareholders made cash advances to the Company to help with short-term working capital needs.  The total balance due on unstructured loans from shareholders amount to $177,742 at September 30, 2011 and $127,461 at December 31, 2010.  Loans from stockholders made with repayment terms are described in Note 6 above.

The Board of Directors authorized the issuance of 1,000,000 Series A Preferred Stock in payment of a loan from a shareholder in the amount of $64,000. These shares can be converted to common stock in 2013.