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Payables and Accruals
3 Months Ended
Sep. 30, 2011
Payables and Accruals 
Accounts Payable and Accrued Liabilities Disclosure [Text Block]

NOTE 6 -       NOTES PAYABLE

 

During 2010, the Company entered into a loan agreement with an investor.  The note carried an interest rate of 7% per annum.  During the nine months ended September 30, 2011, the Company received $137,000 in proceeds from additional loans made under this agreement.  The balance of this loan at September 30, 2011 and December 31, 2010, was $166,200 and $20,700, respectively, along with accrued interest of $6,660 and $649, respectively.  Effective August 1, 2011, a new agreement was entered into converting the note to a senior convertible promissory note, with a term of 18 months and an interest rate of 10% per annum.   The principal balance at that date was $166,200.  Interest payments of $4,155 are due on a quarterly basis.  The principal and interest on the note may be converted into shares of common stock at the lower of $0.20 or a price equal to that of the thirty day moving average of the bid.  As of September 30, 2011, the Company has not paid the quarterly interest payment due.

                                         

During 2009, the Company entered into loan agreements with investors for $9,000.  The notes carried an interest rate of 7% and were due on demand.  During the quarter ended September 30, 2011, the investors signed a letter of agreement to convert the notes, including any accrued interest, into 42,000 shares of restricted common stock.  Interest expense on these notes for the quarter ended September 30, 2011 was $315.