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NOTES PAYABLE - CURRENT
12 Months Ended
Dec. 31, 2012
Debt Disclosure [Abstract]  
Short-term Debt [Text Block]

NOTE 5. - NOTES PAYABLE – CURRENT

 

Note payable at December 31, 2012 and 2011 consists of an unsecured demand note payable of $30,000 with interest at 10%.

 

Notes payable - related parties consist of:

 

    December 31,  
    2012     2011  
             
Convertible demand note payable to employee, 11% (A)   $ 59,000     $ 59,000  
Demand note payable to director, 18%, unsecured     20,000       40,000  
Convertible demand note payable to director, 12%, unsecured (B)     40,000       40,000  
Demand note payable to director, 10%, unsecured     30,000       30,000  
Demand note payable to officer and director, 12%, unsecured     0       5,000  
Demand note payable to officer, 18%, unsecured     0       23,000  
    $ 149,000     $ 197,000  

 

(A) Convertible demand note payable to employee, 11% - At December 31, 2012 and 2011, the Company was obligated to an employee for $59,000 with interest at 11%. The note is secured by a subordinate lien on all of the Company's assets. The principal and accrued interest are convertible at the option of the holder into shares of common stock at $.16 per share.

 

(B) Convertible demand note payable to director, 12%, - At December 31, 2012 and 2011, the Company was obligated to a director for $40,000 with interest at 12%. The note is unsecured and the principal is convertible at the option of the holder into shares of common stock at $.11 per share.