Note 5 - Notes Payable

9 Months Ended

Sep. 30, 2011

Debt Disclosure [Text Block]

NOTE 5 – NOTES PAYABLE

Notes payable consists of the following as of:

	September 30, 2011		December 31, 2010
Note payable to a related party, secured by substantially all of our assets and three trademarks.  The note, including interest at the per annum rate of 12%, is due on August 12, 2012.	$	308,653	$	-
Notes payable to a bank, secured by our personal property, due in monthly principal and interest payments of $2,913 through August 2011, including interest at a per annum rate of 7.5%.  The notes were paid in full during the nine months ended September 30, 2011.		-		22,716
Notes payable to a stockholder, unsecured, bearing interest at 8% per annum and due on demand.  The notes were paid in full during the nine months ended September 30, 2011.		-		20,000
Note payable to our Chief Financial Officer.  As of December 31, 2010, this note was unsecured, non-interest bearing and due on demand.  On August 23, 2011, the note was modified to provide 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.		44,564		44,000
Total	$	353,217	$	86,716

For the purposes of balance sheet presentation notes payable have been grouped as follows:

	September, 30, 2011		December 31, 2010
Notes payable	$	-	$	22,716
Notes payable, related party		353,217		64,000
	$	353,217	$	86,716