Notes Payable

3 Months Ended

Mar. 31, 2012

Notes Payable [Abstract]

Notes Payable

7.      Notes Payable

At March 31, 2012 and at December 31, 2011, notes payable and accrued interest consisted of:

	2012		2011
Rasel notes payable and accrued interest	$	136,795	$	135,548
Cordelia note payable and accrued interest		727,382		1,006,944
Total notes and short-term receivables	$	864,177	$	1,142,492

Rasel LTD - Convertible Notes Payable

On October 6, 2009 the Company signed a note payable for $25,000 to Rasel (an affiliated entity of Moshe Schnapp, a former director and officer of the Company in 2010) due on October 6, 2010 bearing interest at 4% per annum.  The proceeds were used to pay for half of existing accounts payable for legal fees incurred at the Company’s inception.  On October 20, 2009 the Company signed a note payable for $50,000 payable to Rasel due on October 20, 2010 bearing interest at 4% per annum.  These proceeds were used to pay for startup costs, audit fees and future expenses.  On January 22, 2010 the Company signed a note payable for $50,000 payable to Rasel due on October 30, 2011 bearing interest at 4% per annum.  These proceeds were used for working capital and expenditures.  On January 22, 2010 the Company signed an amendment to extend the maturity date of the promissory notes in the amount of $25,000 and $50,000 dated October 6, 2009 and October 20, 2009, respectively, to October 30, 2011.  On March 2, 2011 the Company and Rasel agreed to extend the maturity of all notes to December 31, 2012 in consideration of adding a conversion feature to the notes with either a 5% discount to the market price or a fixed price of $0.60.  The extension of maturity was effective as of December 30, 2010.

The balance of the notes as of March 31, 2012 and December 31, 2011was $136,795 and $135,548, respectively, which includes accrued interest in the amounts of $11,795 and $10,548 at March 31, 2012 and December 31, 2011, respectively.

Cordelia (CDOO) Note Payable

The Company entered into a settlement agreement to annul its purchase of Triple 8 stock and issued a new promissory note to CDOO in the principal amount of $1,000,000.  The CDOO note bears interest at the rate of ten percent (10%) per annum and is due and payable in full on November 30, 2012.  The balance due at March 31, 2012 on the CDOO note is $727,382, which includes accrued interest in the amount of $27,382.  The balance due as of December 31, 2011 on the CDOO note was $1,006,944, which included accrued interest in the amount of $6,944.