NOTE 8. RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2012

Related Party Transactions Disclosure [Text Block]

NOTE 8.RELATED PARTY TRANSACTIONS

During the three months ended March 31, 2012, the Company issued 4,500,000,000 shares of common stock to its president and CEO to convert $450,000 of accrued but unpaid salary to him.

During the three months ended March 31, 2012, the Company borrowed an aggregate of $50,423 in principal with no interest due and repaid $492,776 in principal payments to its president and CEO. A total of $172,776 was repaid in cash and $320,000 was repaid through the issuance of 3,200,000,00 shares of its common stock. As of March 31, 2012, $24,516 in principal and $1,580 in interest were due.

During the year ended December 31, 2011, the Company borrowed a total of $592,256 from its president and chief executive officer under various written promissory note agreements executed by the Company and under oral agreements. The agreement and notes had interest rates of 0%. The Company repaid notes totaling $465,460 and interest of $-0- to its president and chief executive officer, $320,000 of which was repaid through the issuance of common stock and $145,460 of which was repaid in cash. As of December 31, 2011, $466,869 in principal and $1,392 in interest was due to its president and chief executive officer.