RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2013

Related Party Transactions [Abstract]

RELATED PARTY ADVANCES

NOTE 8 – RELATED PARTY TRANSACTIONS

During the three month period ended March 31, 2013, W-Net Fund I, LP converted $353,500 into 50,500,000 shares of the Company’s common stock. The entire principal amount of $353,500 is in relation to the 6% senior secured convertible notes (see “NOTE 11 – 6% SENIOR CONVERTIBLE NOTES”) that the Company issued during the twelve-month period ended December 31, 2012.

On April 2, 2013, W-Net Fund I, LP converted an additional $119,000 of principal related to the 6% convertible notes into 17,000,000 shares of the Company’s common stock (see “NOTE 15 – SUBSEQUENT EVENTS”) at a conversion price of $0.007 per share.

On February 7, 2013, Europa International, Inc. converted $70,000 of principal related to the Company’s 6% convertible notes (see “NOTE 11 - 6% SENIOR CONVERTIBLE NOTES”) into 10,000,000 shares of the Company’s common stock. The conversion price was $0.007 per share.

On March 14, 2013, an employee of the Company loaned us $25,000 via a note payable. Per the terms of the note, the principal accrues interest at the rate of 6% per year with a term of 90 days. The note does not require any principal and/or interest payments during the 90-day term, but the Company can make, at its sole discretion, principal and/or interest payments in any amount it chooses during the 90 day term. At the conclusion of the note’s 90-day term the Company is required to pay, in full, any and all unpaid principal and/or interest.

On March 20, 2013, the same employee of the Company who loaned us $25,000 via a note payable purchased 2,000,000 shares of the Company’s common stock at a price of $0.035 per share. The aggregate proceeds to the Company were $70,000. The shares were purchased as part of the Company’s Subscription Agreement dated December 2011.