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Notes Payable - Related Party
6 Months Ended
Jun. 30, 2013
Notes Payable - Related Party [Abstract]  
Notes Payable - Related Party

9.  Notes Payable - Related Party


Our notes payable - related party consisted of the following at:


     


June 30,

2013

December 31,

2012

Note payable to a former officer of the Company, with

   interest at 9% per annum, currently in default

$       175,000

$       175,000

Note payable to an officer of the Company, with interest

   at 12% per annum, currently in default

100,000

100,000

Note payable to an officer of the Company, with interest

   at 12% per annum, currently in default

6,000

15,000

Convertible note payable to an officer of the Company,

   with interest at 12% per annum, convertible into shares

   of common stock at a discount of 10% to the previous

   three day average market price, currently in default

15,000

15,000

Discount on convertible note payable to officer

-

(8,898)

 

 

 

 

$       296,000

$       296,102


For the convertible note payable to an officer, we recorded a debt discount related to the estimated value of the derivative for the conversion feature of the note, and a derivative liability at the inception of the note.  We amortized the debt discount to interest expense over the life of the note on a straight-line basis.  The discount on this convertible note payable was $0 and $8,898 at June 30, 2013 and 2012, respectively.


Interest payable - related party was $87,275 and $68,300 at June 30, 2013 and December 31, 2012, respectively.