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NOTE 5 - ADVANCES FROM OFFICER AND STOCKHOLDER
12 Months Ended
Mar. 31, 2012
Advancesfrom Officerand Stockholder
NOTE 5 – ADVANCES FROM OFFICER AND STOCKHOLDER

Advances from Stockholder:

Advances from a stockholder at March 31, 2012 and 2011 were $32,400 and $31,000, respectively.

Advances from Officer:

Our CEO, Ryan Corley, has made advances to the Company in prior years. During the years ended March 31, 2012 and 2011, the CEO made additional unsecured advances totaling $84,400 and $48,400. During the years ended March 31, 2012 and 2011, the Company made payments on these advances of $2,000 and $4,000. Also during the years ended March 31, 2012 and 2011, the Company converted $55,043 and $88,437 of the advances into notes payable. At March 31, 2012 and 2011, advances from the CEO were $29,000 and $2,543, respectively.

The Company has notes payable to the CEO in the aggregate amount of $605,555 and $540,062 as of March 31, 2012 and 2011. During the year ended March 31, 2011, the CEO transferred $20,000 of these notes to unrelated entities. These notes with accrued interest were then converted into 401,070 shares of the Company’s common stock. Also, year ended March 31, 2011, the CEO transferred $25,000 of notes payable to the CFO, Secretary and an outside member of the Board of Directors. These notes were then converted into 500,000 shares of the Company’s common stock. Additionally, during the year ended March 31, 2011, the CEO requested conversion of $85,000 in notes payable and $76,396 of accrued interest. The CEO assigned 1,563,940 of the conversion shares to trusts held for the benefit of his children, a relative and an unrelated individual. The CEO received 1,663,979 of the converted shares. Accrued interest owed on these notes at March 31, 2012 and 2011 is $122,670 and $110,689. These notes and accrued interest are convertible into 13,372,992 and 11,812,385 shares of restricted common stock of the company.

An entity controlled by the CEO made unsecured advances totaling $-0- and $23,250 during the year ended March 31, 2012 and 2011. The entity converted $10,350 of the advances into notes payable bearing interest of 3% during the year ended March 31, 2011. At March 31, 2012 and 2011, advances from the entity controlled by the CEO were $10,500 and $10,500 and notes payable totaled $160,250 and $160,250. Accrued interest owed on these notes at March 31, 2012 and 2011 is $12,136 and $7,684. These notes and accrued interest are convertible into 2,780,783 and 2,710,013 shares of restricted common stock of the company.