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CONVERTIBLE NOTES PAYABLE	6 Months Ended
Jun. 30, 2012
Notes to Financial Statements
CONVERTIBLE NOTES PAYABLE	NOTE 5 - CONVERTIBLE NOTES PAYABLE During 2007, the Company commenced a private placement of up to $400,000 principal amount of 10% Convertible Promissory Notes originally due in August 2008 (the “Notes”). The Company raised $375,000 under this private placement in 2007 and the remaining $25,000 was raised in 2008. Holders of Notes will have the right, at their option, to convert the outstanding principal and interest of the Notes into shares of the Company’s Series A Preferred Stock at any time and from time to time at the option of the holder at the initial conversion price of $0.005333 per share. The Notes are unsecured. In June 2011, the noteholder of the $140,000 under this convertible note issue agreed to extend the maturity date of these notes to September 30, 2015 at an interest rate of 10% per annum. Additionally, the noteholder agreed in writing to suspend its right to convert its notes until such time as the Company’s authorized shares have been increased. Remaining shares to be potentially issued under this convertible note issue are 26,250,000. As of June 30, 2012 and December 31, 2011, the remaining principal balance on the notes was $140,000. Accrued interest at June 30, 2012 and December 31, 2011 amounted to $71,750 and $64,750, respectively. Interest expense for the three and six months ended June 30, 2012 and 2011 was $3,500 and $7,000 for both periods, respectively.

CONVERTIBLE NOTES PAYABLE

6 Months Ended

Jun. 30, 2012

NOTE 5 - CONVERTIBLE NOTES PAYABLE

During 2007, the Company commenced a private placement of up to $400,000 principal amount of 10% Convertible Promissory Notes originally due in August 2008 (the “Notes”). The Company raised $375,000 under this private placement in 2007 and the remaining $25,000 was raised in 2008. Holders of Notes will have the right, at their option, to convert the outstanding principal and interest of the Notes into shares of the Company’s Series A Preferred Stock at any time and from time to time at the option of the holder at the initial conversion price of $0.005333 per share. The Notes are unsecured.

In June 2011, the noteholder of the $140,000 under this convertible note issue agreed to extend the maturity date of these notes to September 30, 2015 at an interest rate of 10% per annum. Additionally, the noteholder agreed in writing to suspend its right to convert its notes until such time as the Company’s authorized shares have been increased. Remaining shares to be potentially issued under this convertible note issue are 26,250,000.

As of June 30, 2012 and December 31, 2011, the remaining principal balance on the notes was $140,000. Accrued interest at June 30, 2012 and December 31, 2011 amounted to $71,750 and $64,750, respectively. Interest expense for the three and six months ended June 30, 2012 and 2011 was $3,500 and $7,000 for both periods, respectively.