8. LOAN FROM SHAREHOLDER

9 Months Ended

Sep. 30, 2013

Notes to Financial Statements

8. LOAN FROM SHAREHOLDER

The Company has outstanding loans from shareholders of $16,267 and $16,559 as at September 30, 2013 and December 31, 2012, respectively, which are non-interest bearing and have no specific terms of repayment. In addition, the Company has outstanding loans from shareholder of $160,149 and $231,277 as at September 30, 2013 and December 31, 2012, respectively bearing interest of 1% per month on a cumulative basis. The Company accrued net interest of $11,473 during the nine month period ended September 30, 2013 on these loans.  During the nine month period ended September 30, 2013, the Company repaid $74,051of the loan from shareholder consisting of $63,089 in principal and $10,962 in interest.  The amount was repaid with $24,265 cash and the remaining $48,700 was settled with the issuance of 1,391,371 common shares valued at $0.035 (of which 417,411 shares are to be issued as of September 30, 2013).