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Disclosure - Note 9 - Subsequent Event
9 Months Ended
Sep. 30, 2012
Subsequent Events [Abstract]  
8. Subsequent Event

On October 15, 2012, Barron Partners L.P. converted 262,202 shares of Series A Preferred Stock into 940,000 Common Shares. Subsequent to this conversion event, Barron Partners owned 5,443,866 shares of Series A Preferred Stock and 1,569,147 Common Shares.

 

The note dated June 2011 originally for $1,250,000 with a current balance of $981,655 with a maturity date of October 31, 2012 is currently in default. The Company is in the process of amending the note which includes extending the maturity date to January 31, 2013. Other terms of the amendment include; converting the timing of interest payments from quarterly to monthly and the Company agreeing that 40% of the proceeds from any new financing, other than advances made by Action Capital Corporation under its existing line of credit facility shall first be used to reduce the Company’s indebtedness under the note until the Note is paid in full.