Notes Payable.

3 Months Ended

Mar. 31, 2013

Notes Payable Other Than Bank [Abstract]

Notes Payable Other Than Bank Disclosure [Text Block]

Note 5. Notes Payable.

The following summarizes notes payable balances at March 31, 2013 and December 31, 2012.

	March 31, 2013		December 31, 2012
Short-term notes payable:
Insurance policy financing	$	16,678	$	33,266
Note payable due August 22, 2013		40,000		40,000
Note payable due May 22, 2013		21,000		21,000
Note payable due May 31, 2013		15,000		15,000
Total short-term notes payable	$	92,678	$	109,266
Short-term notes payable, related party:
Note payable due December 26, 2013	$	250,000	$	250,000
Note payable due March 31, 2014		200,000		—
Total short-term notes payable, related party	$	450,000		—
Short-term convertible notes payable:
Note payable due August 10, 2013	$	65,698	$	65,698
Note payable due August 11, 2013		11,018		11,018
Notes payable due January 31, 2013		60,000		60,000
Notes payable due September 20, 2013		150,000		150,000
Total short-term convertible notes payable	$	286,716	$	286,716
Short-term convertible notes payable, related party:
Note payable due August 8, 2013	$	300,000	$	300,000
Notes payable due September 20, 2013		350,000		350,000
Notes payable due December 28, 2013		6,400		6,400
Total short-term convertible notes payable, related party	$	656,400	$	656,400
Long-term convertible notes payable, related party:
Notes payable due March 31, 2014	$	0	$	200,000

On April 27, 2013, the Company refinanced $250,000 of short term notes with Jeanne Rudelius, a relative of Director Robert Rudelius. Under the terms of the new note, the loan matures on December 26, 2013, bears interest at 10% per year, and the principal and accrued interest thereon is convertible into the Company’s common stock at $0.50 per share (see Note 6 for consideration paid to the lender in the form of warrants).

On May 1, 2013, the Company extended the maturity date of its $6,400 loan short term note payable with a related party. Under the terms of the amended loan, the note matures on December 28, 2013, bears interest at 10% per year, and the principal and accrued interest thereon is convertible into the Company’s common stock at $0.50 per share (see Note 6 for consideration paid to the lender in the form of equity).