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NOTES PAYABLE

12 Months Ended

Dec. 31, 2011

NOTES PAYABLE

7.NOTES PAYABLE:

On December 1, 2011 the Company received cash in consideration for issuing notes payable of $520,947 from related parties and $58,400 from other individuals. The notes payable have a stated interest of 6% and are due November 30, 2012. Interest is accrued and record in accounts payable and accrued expenses. In connection with the issuance of the notes payable, the Company agreed to issue 800,000 shares of the Company's common stock. The issuance of the common stock (valued at $117,948) has been treated as debt discount and is being amortized over the life of the note using the interest method. Notes payable consist of the following:
	December 31, 2011	Non Related Parties	Related Parties s
	Notes payable	$ 58,400	$ 520,947
	Less unamortized debt interest	10,812	97,303
		$ 47,588	$ 423,644

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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