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5. NOTES PAYABLE, RELATED PARTY
12 Months Ended
Dec. 31, 2012
Related Party Transactions [Abstract]  
5. NOTES PAYABLE, RELATED PARTY

During the year ended December 31, 2012, the Company borrowed a total of $224,801 from its president and chief executive officer under various written and oral promissory note agreements executed by the Company. The notes had interest rates of 0%. The Company repaid notes totaling $679,803 and interest of $1,769. A total of $359,803 was repaid in cash and $320,000 was repaid through the issuance of 160,000 shares of its common stock. As of December 31, 2012, $11,867 in principal and $0 in interest was due under the above loans.

 

During the year ended December 31, 2011, the Company borrowed a total of $592,256 from its president and chief executive officer under promissory notes executed by the Company. The notes had interest rates of 0%. The Company repaid notes totaling $465,460 and interest of $0. As of December 31, 2011, $466,869 in principal and $1,392 in interest was due.