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Demand Promissory Notes
6 Months Ended
Jun. 30, 2012
Demand Promissory Notes

Note 5 – Demand Promissory Notes

 

During the three months ended June 30, 2012 we entered into a Memorandum of Understanding (the “MOU”) with Melvin Lenkin, Samuel Rose and others (collectively the “Investors”). Pursuant to the MOU, we issued to the Investors demand promissory notes (collectively, the “Demand Notes”) in the aggregate principal amount of $5,000,001.  Interest accrues on the unpaid principal balance of the Demand Notes at a rate of 8.00% per annum. The principal balance of the Demand Notes, together with accrued and unpaid interest, is due and payable at any time after June 30, 2012 on demand.

 

For the three months ended June 30, 2012, we recognized $67,408 of interest expense in connection with the Demand Notes.