Schedule of Notes Payable (Tables)

12 Months Ended

Dec. 31, 2012

Tables/Schedules

Schedule of Notes Payable

Notes payable consist of the following:
Schedule of Notes Payable
	December 31, 2012		December 31, 2011
Convertible promissory note; interest at 12.5% of face amount, payable quarterly; this note is unsecured and matured in November 2003 (convertible into approximately 107,843 shares at December 31, 2012 and 2011) (1)		$     55,000		$     55,000
Secured promissory note from a shareholder; interest at 6%, required monthly installments of interest only through December 30, 2010, then required monthly installments of $3,301 including principal and interest; matured December 30, 2011; secured by all tangible and intangible assets of the Company (2)		249,206		273,078
		304,206		328,078
Less current portion		304,206		328,078
		$                -		$                -

——————————

(1)           This convertible promissory note matured in November 2003.  The Company has been unable to pay this note and has been making quarterly interest payments.  The Company has not negotiated an extension of this note and the lender has not made any demands for payment of the principal amount of this note. The Company is currently developing a plan to satisfy this note.  At December 31, 2012, the outstanding principal and accrued interest of the convertible promissory note was $58,466.

(2)           The Company agreed to issue additional shares of stock to this note holder in the event that any additional shares are issued at less than $.50 per share, excluding employee stock options, prior to the payment in full of the secured promissory note.  

In December 2011, the Company agreed to extend the expiration date on 150,000 and 275,000 common stock purchase warrants with exercise prices of $.01 and $1.00, respectively, from January 2, 2012 to January 2, 2015 and adjusted the exercise prices to $.003 in return for a credit of $1,113 on the outstanding principal balance of the secured promissory note. 

This secured promissory note matured on December 30, 2011.  The Company continues to make monthly principal and interest payments.  The note holder has not made any demands for payment of the outstanding principal balance of this note.  At December 31, 2012, the outstanding principal and accrued interest of the secured promissory note was $249,861.

Aggregate future maturities of notes payable at December 31, 2012 are as follows:

2013     $    304,206