NOTE 3: NOTES PAYABLE

As of March 31, 2015 and December 31, 2014, the Company had current and long term notes payable of $24,000 and $24,000 and $43,800 and $51,800, respectively as shown in the table below.

Notes and loans payable	March 31, 2015		December 31, 2014

Short Term
Maryland TEDCO Note	$	24,000	$	24,000

Total	$	24,000	$	24,000

Long Term
Maryland TEDCO Note	$	43,800	$	51,800

Total	$	43,800	$	51,800

As of December 31, 2012, the Company had an outstanding loan to a third party in the amount of $74,900, which was originally issued during 2006 as part of an investment agreement. The loan was unsecured and bore interest at 25% per year for four years. The Company had accrued interest of $74,900, which was included in accounts payable and accrued expenses on the balance sheet. The note was in default until October 24, 2011, at which time the Company entered into a Termination and Release Agreement (“Release”) with the noteholder. The terms of the Release, among other things, terminated the Investment Agreement between the parties, and required the Company to issue a Promissory Note to the noteholder in the combined amount of principal and accrued interest owed to date, for a total principal amount of $149,800 (the “Maryland TEDCO Note”). The Maryland TEDCO Note is interest free, and is payable in monthly installments of $2,000 beginning November 1, 2011. As of March 31, 2015 and December 31, 2014 the principal amount owing was $67,800 and $75,800, respectively, of which $24,000 and $24,000, respectively, has been recorded as the current portion of the note, and $43,800 and $51,800, respectively, as the long-term portion of the note, respectively.