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Notes Payable

3 Months Ended

Mar. 31, 2012

Debt

Debt Disclosure [Text Block]

NOTE 8. NOTES PAYABLE



	December 31, 2011		September 30, 2011

Bio Technology Partners Business Trust		27,800		24,100
Bombardier Pacific Ventures (Note 7)		36,281		36,281
Venture Bridge Advisors		109,294		109,294
David Koos (Note 7)		16,357		--
Notes Payable by Entest BioMedical derecognized upon deconsolidation of Entest BioMedical
Notes payable	$	189,732	$	169,575
Due to Affiliate	$	59,740	$	59,500
Convertible Notes Payable (Note 10)	$	391,201	$	313,701

Both of Bio-Technology Partners Business Trust and Venture Bridge Advisors have provided lines of credit to the Company in the amount of $700,000 each or so much thereof as may be disbursed to, or for the benefit of the Company by Lender in Lender's sole and absolute discretion. The unpaid principal of these lines of credit bear simple interest at the rate of ten percent per annum. Interest is calculated based on the principal balance as may be adjusted from time to time to reflect additional advances or payments made hereunder. Principal balance and accrued interest shall become due and payable in whole or in part at the demand of the Lender.

All loans to the Company made by either of David R. Koos or Bombardier Pacific Ventures are due and payable at the demand of Koos or Bombardier and bear simple interest at a rate of 15% per annum.

The Amount Due to affiliate represents

(a)

rent prepaid to the Company by Entest BioMedical pursuant to a sublease agreement entered into by and between the Company and Entest BioMedical on June 15, 2009. Beginning October 2010 Entest has been paying rental expenses directly to the owner of the subleased space and as of the Company’s fourth fiscal quarter both of the Company and Entest BioMedical have agreed to void the terms and conditions of the sublease. $59,500 previously paid to the Company by Entest BioMedical to repay rental expenses is currently due and payable at the demand of Entest BioMedical. This amount accrues no interest.

(b)

$240 for expenses paid on behalf of the Company by Entest Biomedical.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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