NOTES PAYABLE

6 Months Ended

Jun. 30, 2012

Debt Disclosure [Abstract]

NOTES PAYABLE

NOTE 7 – NOTES PAYABLE

Notes payable consist of the following:

	June 30,		December 31,
	2012		2011
	(Unaudited)
Revolving Promissory Note payable to W-Net. Under the terms of the Revolving Note, W-Net agreed to advance to us, from time to time and at W-Net’s discretion, amounts up to an aggregate of $150,000 pursuant to requests made by us until December 31, 2012. All advances shall be paid on or before December 31, 2012 and interest shall accrue from the date of any advance on any principal amount withdrawn, and on accrued and unpaid interest thereon, at the rate of twelve percent (12%) per annum, compounded annually. The Company’s obligations under the Revolving Note will accelerate, upon written notice from W-Net, upon a bankruptcy event with respect to the Company, any default in the Company’s payment obligations or the Company’s breach of any provision of any material agreement between the Company and W-Net. Upon an event of default, the Revolving Note will bear interest at the rate of 15% per annum, compounded annually.	$	67,942	$	—
Note payable to former Phototron Officer. The note accrues interest at the per annum rate of 12% and payments of principal and interest in the amount of $4,000 per month. All unpaid amounts are due on August 22, 2012. The note is secured by three trademarks and substantially all of our assets.		20,000		—
Note payable, unsecured and due 60 days from demand. The note bears interest at the rate of 25% per annum, payable semi-monthly. The note is personally guaranteed by the Company's CEO. On April 5, 2012, this note was rolled into a convertible note payable, see note 6.		—		25,000
Note payable, related party, unsecured and due 120 days from demand. The note is non interest bearing and is personally guaranteed by the Company's CEO. The Company imputed interest at the rate of 10% per annum. On April 5, 2012, this note was rolled into a convertible note payable, see note 6.		—		100,000
Note payable, related party, unsecured and due 120 days from demand. The note bears interest at the rate of 10% per annum, payable quarterly and is personally guaranteed by the Company's CEO. On April 5, 2012, this note was rolled into a convertible note payalbe, see note 6.		—		93,000
	$	87,942	$	218,000

For financial statement presentation purposes, the above notes have been classified as follows:

Note payable, related party	$	—	$	193,000
Notes payable		87,942		25,000
	$	87,942	$	218,000

Although the note holders have not made a demand for payment, the above notes have been classified as current liabilities.