8. RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2012

Related Party Transactions [Abstract]

NOTE 8 - RELATED PARTY TRANSACTIONS

During the nine months ended September 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 nine months ended September 30, 2012, the Company borrowed an aggregate of $212,934 in principal with no interest due and repaid $679,804 in principal and $1,768 in interest payments to its president and CEO.  A total of $359,804 was repaid in cash and $320,000 was repaid through the issuance of 160,000 shares of its common stock.  As of September 30, 2012, no principal and 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.