Convertible Note Payable

12 Months Ended

Dec. 31, 2012

Debt Disclosure [Abstract]

Convertible Note Payable

Note 7 Convertible Note Payable

There are five convertible notes payable. The notes are non-interest bearing, unsecured and payable on demand. At any time prior to repayment any portion or the entire note may be converted into common stock at the discretion of the holder on the basis of $0.01 of debt to 1 share. The effect that conversion would have on earnings per share has not been disclosed due to the current anti-dilutive effect

The balance of the first convertible note payable at December 31, 2012 is as follows:

	2012		2011
Balance, December 31
Proceeds from promissory note	$	40,000	$	40,000
Value allocated to additional paid-in capital		40,000		40,000
Balance allocated to convertible note payable		-		-
Amortized discount		38,000		30,000
Balance, convertible note payable	$	38,000	$	30,000

The total discount of $40,000 is being amortized over 5 years starting April, 2008. Accordingly, the annual interest rate is 20% and for the year ended December 31, 2012, $8,000 was recorded as interest expense. As at December 31, the unamortized discount is $2,000.

The balance of the second convertible note payable at December 31, 2012 is as follows:

	2012		2011
Balance, December 31
Proceeds from promissory note	$	20,000	$	20,000
Value allocated to additional paid-in capital		20,000		20,000
Balance allocated to convertible note payable		-		-
Amortized discount		10,000		6,000
Balance, convertible note payable	$	10,000	$	6,000

The total discount of $20,000 is being amortized over 5 years starting June 2010. Accordingly, the annual interest rate is 20% and for the year ended December 31, 2012, $4,000 was recorded as interest expense. As at December 31, 2012, the unamortized discount is $10,000.

The balance of the third convertible note payable at December 31, 2012 is as follows:

	2012		2011
Balance, December 31
Proceeds from promissory note	$	10,000	$	10,000
Value allocated to additional paid-in capital		10,000		10,000
Balance allocated to convertible note payable		-		-
Amortized discount		3,500		1,500
Balance, convertible note payable	$	3,500	$	1,500

The total discount of $10,000 is being amortized over 5 years starting April, 2011. Accordingly, the annual interest rate is 20% and for the year ended December 31, 2012, $2,000 was recorded as interest expense. As at December 31, 2012, the unamortized discount is $6,500.

The balance of the fourth convertible note payable at December 31, 2012 is as follows:

	2012		2011
Balance, December 31
Proceeds from promissory note	$	10,000	$	10,000
Value allocated to additional paid-in capital		10,000		10,000
Balance allocated to convertible note payable		-		-
Amortized discount		3,250		1,250
Balance, convertible note payable	$	3,250	$	1,250

The total discount of $10,000 is being amortized over 5 years starting May, 2011. Accordingly, the annual interest rate is 20% and for the year ended December 31, 2012, $2,000 was recorded as interest expense. As at December 31, 2012, the unamortized discount is $6,750.

The balance of the fifth convertible note payable at December 31, 2012 is as follows:

	2012		2011
Balance, December 31
Proceeds from promissory note	$	25,000	$	-
Value allocated to additional paid-in capital		25,000		-
Balance allocated to convertible note payable		-		-
Amortized discount		2,500		-
Balance, convertible note payable	$	2,500	$	-

The total discount of $25,000 will be amortized over 5 years starting July, 2012. Accordingly, the annual interest rate is 20% and for the year ended December 31, 2012, $2,550 was recorded as interest expense. As at December 31, 2012, the unamortized discount is $22,500.