Notes and Convertible Notes Payable

12 Months Ended

Dec. 31, 2012

Debt Disclosure [Abstract]

Notes and Convertible Notes Payable

NOTE 6 – NOTES AND CONVERTIBLE NOTES PAYABLE

The Company issued a promissory note for $35,000 during the period ended December 31, 2009. The note bears 6% interest, is unsecured and due on demand. Interest expense was $2,100 and $2,100 for the years ended December 31, 2011 and 2010, respectively. Total accrued interest on this loan was $5,299 as of December 31, 2011. The note and all accrued interest were converted to shares of common stock during the first quarter of 2012.

The Company issued two notes payable in the amount of $5,000 each in February 2011. The notes are unsecured, non-interest bearing and due on demand. The notes can be converted to common stock at the note holders’ discretion at $0.001 per share. The notes totaled $10,000 as of December 31, 2011. The notes were converted in full to 10,000,000 shares of common stock during the first quarter of 2012.

On October 4, 2012, a portion of a note payable and related accrued interest were assigned to an unrelated party. The entire principal and accrued interest amount of $33,333 were converted to shares of common stock per the terms of the amended convertible note payable. A loss on the conversion of the note to stock of $106,242 was recorded in other expenses.

The Company borrowed $6,000 in December 2011. The loan is unsecured, non-interest bearing and due on demand.

The balance of this loan was $6,000 as of December 31, 2012 and 2011, respectively.

Convertible notes payable consist of the following at December 31, 2012 and 2011:

Convertible	2012			2011
On March 1, 2012, the Company executed a note payable for proceeds of $35,800. The note bears 0% interest, is unsecured and due on demand.	$	22,800		$	-
On October 5, 2012, the Company executed a convertible promissory note for proceeds of $32,500. The note bears 8% interest and is secured by common stock of the Company. The loan matures on July 10, 2013. Any principal balance remaining after the due date is subject to an increased interest rate of 22% APR. The principal and interest can be convertible into shares of the Company’s common stock at a 45% discount to the market price.		32,500			-
On August 15, 2012, the Company executed a convertible promissory note to Asher Enterprises, Inc. for proceeds of $32,500. The note bears a 8% interest and is secured by common stock of the Company. The loan matures on May 17, 2013. Any principal balance remaining after the due date is subject to a increased interest rate of 22% APR. The principal and interest can be convertible into shares of the Company’s common stock at a 45% discount to the market price.		32,500			-
On January 16, 2012, the Company issued a convertible promissory note to a shareholder for proceeds of $50,000. The note bears 10% interest and is secured by common stock of the Company. The loan matures on January 16, 2013. Beginning 30 days before the maturity date of January 16, 2013, the note and any accrued interest is convertible into shares of the Company’s common stock at $0.05 per share. Additionally, the Company issued 100,000 shares of common stock in connection with the note. The value of the shares of common stock will be recorded as additional interest amortized over the life of the loan. On October 4, 2012, $30,000 of principal and $3,333 of accrued interest were assigned to an unrelated party.		20,000			-
Debt Discount		(5,787	)		-
Total notes payable	$	102,013		$	-
Less current maturities	$	102,013		$	-