NOTE 8 - Notes payable

3 Months Ended

Mar. 31, 2012

Debt Disclosure [Text Block]

NOTE 8 – Notes payable

Notes payable consist of the following at December 31, 2011 and March 31, 2012:

	December 31, 2011		March 31, 2012
Promissory note to a bank for $100,000, secured by cash held in impound account at the bank. Bears interest at the prime rate, 3.25% as of December 31, 2011, and matures in March of 2013.	$	42,812	$	34,376
Promissory note to a bank for $100,000, secured by cash held in impound account at the bank. Bears interest at the prime rate, 3.25% as of December 31, 2011, and matures in March of 2014.		75,886		67,723
Promissory note to an unrelated party for $100,000, unsecured, interest of 10%, due on January 31, 2011. The note was paid off during 2011.		-		-
	$	118,698	$	102,099

As of March 31, 2012, $66,400 of the notes payable is short-term and $35,699 is long-term. As of December 31, 2011 $67,270 of the notes payable is short-term and $51,428 is long-term.

During the year ended December 31, 2011, Rubicon obtained a line of credit in the amount of $200,000. The line is collateralized by Rubicon’s deposits at the bank. The line bears interest at the rate Rubicon’s money market account earns at the bank plus 2%, which was 2.45% as of December 31, 2011. The line matures on March 11, 2013. As of December 31, 2011 and March 31, 2012, Rubicon had borrowed $200,000 on the line.

Interest expense, related to the above, for the three-months ended March 31, 2012 and 2011 was $3,844 and $4,795, respectively.