RELATED PARTIES TRANSACTIONS (Tables)

3 Months Ended

Mar. 31, 2014

Notes payable – related parties consists of the following at March 31, 2014:

Promissory note payable to the non-employee Board of Director, secured by up to $200,000 in and to all of the Company’s right, title and interest in its fixed assets, inventory, receivables, and all documents including its books, records, and files; bearing interest at 21.21% per annum, due in monthly principal and interest payments of $8,585, maturing on November 1, 2014	$	70,833

Less amounts due within one year		70,833

Long-term portion of notes payable	$	—

Notes payable – related parties consists of the following at December 31, 2013:

Promissory note payable to the Chief Executive Officer of the the Company, unsecured, bearing interest at 7.5% per annum, due in monthly principal and interest payments of $7,050, maturing on August 1, 2013.	$	49,702

Promissory note payable to the non-employee Board of Director, secured by up to $200,000 in and to all of the Company’s right, title and interest in its fixed assets, inventory, receivables, and all documents including its books, records, and files; bearing interest at 21.21% per annum, due in monthly principal and interest payments of $8,585, maturing on November 1, 2014.		77,917

		127,619

Less amounts due within one year		127,619

Long-term portion of notes payable	$	—

As of March 31, 2014, principal payments on the notes payable – related parties are as follows:

Other liabilities and accrued interest– related parties consists of the following at:

	March 31, 2014		December 31, 2013

Year-end 2012 bonus payable to Chief Executive Officer	$	67,000	$	67,000
Year-end 2012 bonus payable to employee		17,500		17,500
Accrued interest on note payable non-employee Board of Director		3,004		—
Due to Principals of Carleigh Rae Corp., net		6,017		6,017
	$	93,521	$	90,517