RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2013

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 11 – RELATED PARTY TRANSACTIONS

At March 31, 2013, eight shareholders of the Company held $775,249 and at December 31, 2012, six shareholders of the Company held $732,249 of the senior secured convertible notes payable.

At March, 31, 2013 and December 31, 2012 one shareholder of the Company held $98,000 of convertible notes payable.

At March, 31, 2013, three shareholders of the Company held 761,000 of unsecured notes payable and at December 31, 2012 three shareholders of the Company held $711,000 of unsecured notes payable.

The Company maintains its office at the home of its Chief Executive Officer. No formal lease agreement exists and no direct rent expense has been incurred. However, related occupancy costs of $1,199 and $8,359 were incurred during the three months ended March 31, 2013 and 2012.