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CONVERTIBLE NOTES PAYALE - STOCKHOLDER
12 Months Ended
Dec. 31, 2011
Convertible Notes Payale [Abstract]  
CONVERTIBLE NOTES PAYABLE - STOCKHOLDERS

3. CONVERTIBLE NOTES PAYABLE - STOCKHOLDERS

 

On September 1, 2009, the Company issued an unsecured note payable to a stockholder in exchange for $20,000 in cash, in order for the Company to pay current invoices. The note bored interest at 6% per annum, and matured on September 1, 2010. The stockholder had the option to convert the note and accrued interest into the Company’s common stock at $.01 per share. On September 1, 2010, the note was extended (renewed) to September 1, 2011, with the same terms as the original note with the exception that the option to convert was changed to $.0125 per share. The option was exercised on September 1, 2011 and 1,792,000 shares were issued in satisfaction of the note and accrued interest.

 

On August 23, 2010, the Company issued an unsecured note payable to a stockholder in exchange for $25,000 in cash, for the Company’s working capital needs. The note bored interest at 6% per annum, and matures on August 23, 2011. The stockholder has the option to convert the note and accrued interest into the Company’s common stock at $.0125 per share. The option was exercised on August 23, 2011 and 2,120,000 shares were issued in satisfaction of the note and accrued interest.

 

At December 31, 2011 and 2010, accrued interest on the notes was $0 and $2,132, respectively. Interest expense amounted to $1,768 and $1,734 for the years ended December 31, 2011 and 2010, respectively.