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Notes Payable
3 Months Ended
Mar. 31, 2012
Notes Payable [Abstract]  
Notes Payable

NOTE 2 – NOTES PAYABLE

In March 2012, we renewed a 10% promissory note in the amount of $100,000 and a 7% promissory note in the amount of $50,000, each for additional one-year terms. One of the note holders was issued a three-year warrant to purchase 25,000 shares of our common stock at an exercise price of $0.25.

In February 2012, a zero coupon promissory note in the amount of $230,000 matured and was replaced by a new note of similar terms with a face value of $230,000 and a maturity date of May 31, 2012.

In January 2012, a 24%, $90,000 promissory note matured and was renewed with the same terms. Its maturity date was extended to April 1, 2012, at which time it was renewed again with the same terms and a maturity date of July 1, 2012.

In January 2012, a $200,000 promissory note bearing interest at 14% matured. At maturity, $100,000 was repaid and a new 14% note was issued for the remaining $100,000. The new note matured April 30, 2012 and was renewed at 14% until July 31, 2012.

A 24% convertible promissory note in the amount of $2 million issued to a major stockholder was not repaid on its maturity date of June 4, 2011. As of March 31, 2012, interest of approximately $897,000 was due and not yet paid on this promissory note. While negotiating for a resolution with the note holder, we continue to accrue interest at the rate of 24%.