Quarterly report pursuant to Section 13 or 15(d)

LOANS FROM RELATED PARTY

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LOANS FROM RELATED PARTY
3 Months Ended
Mar. 31, 2012
Notes to Financial Statements  
Note 9. LOANS FROM RELATED PARTY

 Notes payable is as follows:

 

    March 31,     December 31,  
    2012     2011  
             
Unsecured promissory note dated December 2, 2011 and due December 2, 2012, issued to an entity controlled by Michael James an officer of the Company, bearing interest at a rate of 15% per annum.  Interest shall be paid in cash or common stock at the holders’ option.   $ 50,000     $ 50,000  
                 
Unsecured promissory note dated December 2, 2011 and due December 2, 2012, issued to Michael Nahass a director of the Company, bearing interest at a rate of 15% per annum.  Interest shall be paid in cash or common stock at the holders’ option.         100,000           100,000  
                 
Unsecured promissory note dated January 11, 2012 and due January 11, 2013, issued to an entity controlled by Michael James an officer of the Company, bearing interest at a rate of 15% per annum.  The original loan was for $10,000 of which $5,000 was repaid on March 30, 2012.   Interest shall be paid in cash or common stock at the holders’ option.         5,000           -  
                 
Unsecured promissory note dated January 16, 2012 and due January 16, 2013, issued to Derek Peterson an officer and director of the Company, bearing interest at a rate of 15% per annum.  Interest shall be paid in cash or common stock at the holders’ option.         10,000           -  
                 

Unsecured promissory note dated January 16, 2012 and due January 16, 2013, issued to Michael Nahass a director of the Company, bearing interest at a rate of 15% per annum.  Interest shall be paid in cash or common stock at the holders’ option.       5,000         -  
                 
Unsecured demand note dated March 30, 2012, issued to Amy Almsteier an officer and director of the Company, bearing interest at a rate of 15% per annum.  Interest shall be paid in cash or common stock at the holders’ option.         5,000           -  
    $ 175,000     $ 150,000  

 

The unsecured demand notes due to related parties have accrued interest of $8,300 as of March 31, 2012.