RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 8 – RELATED PARTY TRANSACTIONS

At June 30, 2012 and December 31, 2011, five shareholders of the Company held $577,500 of the senior secured convertible notes payable.

One shareholder held $140,000 of convertible notes payable as of June 30, 2012 and December 31, 2011.

At June 30, 2012, three shareholders of the Company held $836,500 of unsecured notes payable. At December 31, 2011, two shareholders of the Company held $636,500 of unsecured notes payable.

The Company maintains its office at the home of its Chief Executive Officer and President. No formal lease agreement exists and no direct rent expense has been incurred. However, related occupancy costs of $6,804 and $15,163 were incurred during the three and six months ended June 30, 2012, respectively. Occupancy costs for the three and six months ended June 30, 2011 were $2,917 and $5,903, respectively.