Notes Payable

6 Months Ended

Jun. 30, 2012

Notes Payable [Abstract]

NOTES PAYABLE

NOTE 2 – NOTES PAYABLE

In May 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 August 31, 2012.

In April 2012, a 14%, $100,000 convertible promissory note matured and was renewed on the same terms until July 31, 2012, at which time the note was again renewed. The new note utilizes the same terms as the previous note and has a maturity date of October 31, 2012.

A 24% convertible promissory note in the amount of $2 million issued to a related party, a major stockholder, was not repaid on its maturity date of June 4, 2011, and is currently in default. As of June 30, 2012, interest of approximately $1.0 million was also due and in default on this promissory note. We continue to accrue interest at the rate of 24% and include these obligations in current liabilities (Note 4).