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Notes Payable
12 Months Ended
Dec. 31, 2013
Debt Disclosure [Abstract]  
Notes Payable

NOTE 4 – NOTES PAYABLE

 

Bank Loan

 

The Company originally had a $200,000 line of credit of with the bank. In August 2010, the Company converted its line of credit with the bank to a bank loan which is collateralized by all of assets of the Company’s subsidiary company, Staf*Tek, including all receivables and property and equipment. The bank loan agreement included the following provisions 1) an agreement to provide insurance coverage for the collateralized assets in the amount of $180,000; 2) covenants to provide certain financial documents to the bank on a monthly and annual basis. On September 9, 2013, the Company received a default letter from the bank. Since that time the bank has requested the company bring the loan current by making monthly payments of $2,698 plus late fees of $50 per month for the nine months which the Company is delinquent, for the total amount as of March 31, 2014 of $24,732, which includes principal, interest and fees. At such time the Company is able to bring the loan current the bank has stated the remaining balance will be refinanced, which terms are yet to be determined. The loan is in default at December 31, 2013 and the principal loan balance continues to bear 6.5% interest. In the event the Company is unable to bring the bank loan current the bank may foreclose which would likely force the Company out of business.

 

As of December 31, 2013 and 2012, the Company owed the bank $118,202 and $131,997, respectively.

 

Interest expense on the Company’s bank borrowing was $8,332 and $9,538, during the years ended December 31, 2013 and 2012, respectively.

 

Other Notes Payable

 

On July 31, 2013, an individual loaned the Company $25,000 for working capital in exchange for a promissory note. The note matures on July 31, 2014 and bears interest at seven percent. Accrued interest on the note totaled $730 at December 31, 2013.

 

On October 1, 2013, two individuals loaned the Company $30,000 for working capital in exchange for promissory notes. The notes mature on October 1, 2014 and bear interest at seven percent. Accrued interest on the note totaled $525 at December 31, 2013.

 

On November 15, 2013, an individual loaned the Company $50,000 for working capital in exchange for a promissory note. The note matures on November 15, 2014 and bears interest at seven percent. Accrued interest on the note totaled $438 at December 31, 2013.

 

On November 18, 2013, an individual loaned the Company $25,000 for working capital in exchange for a promissory note. The note matures on November 18, 2014 and bears interest at seven percent. Accrued interest on the note totaled $63 at December 31, 2013.

 

On December 13, 2013, an individual loaned the Company $10,000 for working capital in exchange for a promissory note. The note matures on December 13, 2014 and bears interest at seven percent. Accrued interest on the note totaled $35 at December 31, 2013.