8. RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

NOTE 8 - RELATED PARTY TRANSACTIONS

During the six months ended June 30, 2012, the Company issued 225,000 shares of common stock to its president and CEO to convert $450,000 of accrued but unpaid salary to him.

During the six months ended June 30, 2012, the Company borrowed an aggregate of $81,726 in principal with no interest due and repaid $529,976 in principal payments to its president and CEO. A total of $209,976 was repaid in cash and $320,000 was repaid through the issuance of 160,000 shares of its common stock. As of June 30, 2012, $18,620 in principal and $1,768 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. As of December 31, 2011, $466,869 in principal and $1,392 in interest was due to its president and chief executive officer.