Convertible Note Payable

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Convertible Note Payable

Note 7 Convertible Note Payable

There are six 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 is as follows:

	Mar 31, 2014		Dec 31, 2013
Balance
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		40,000		40,000
Balance, convertible note payable	$	40,000	$	40,000

The total discount of $40,000 was amortized over 5 years starting April, 2008. Accordingly, the annual interest rate is 20% and for the three months ended March 31, 2014 $0 was recorded as interest expense.

For the three months ended March 31, 2013 $2.000 was recorded as interest expense. As at March 31, 2014, the unamortized discount was $0.

The balance of the second convertible note is as follows:

	Mar 31, 2014		Dec 31, 2013
Balance
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		15,000		14,000
Balance, convertible note payable	$	15,000	$	14,000

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 three months ended March 31, 2014 and 2013, $1,000 was recorded as interest expense. As at March 31, 2014, the unamortized discount was $5,000.

The balance of the third convertible note payable is as follows:

	Mar 31, 2014		Dec 31, 2013
Balance
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		6,000		5,500
Balance, convertible note payable	$	6,000	$	5,500

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 three months ended March 31, 2014 and 2013, $500 was recorded as interest expense. As at March 31, 2014, the unamortized discount was $4,000.

The balance of the fourth convertible note payable is as follows:

	Mar 31, 2014		Dec 31, 2013
Balance
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		5,750		5,250
Balance, convertible note payable	$	5,750	$	5,250

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 three months ended March 31, 2014 and 2013, $500 was recorded as interest expense. As at March 31, 2014, the unamortized discount was $4,250.

The balance of the fifth convertible note payable is as follows:

	Mar 31, 2014		Dec 31, 2013
Balance
Proceeds from promissory note	$	25,000	$	25,000
Value allocated to additional paid-in capital		25,000		25,000
Balance allocated to convertible note payable		-		-
Amortized discount		8,750		7,500
Balance, convertible note payable	$	8,750	$	7,500

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 three months ended March 31, 2014 and 2013 1,500 was recorded as interest expense. As at March 31, 2014 the unamortized discount was $16,250.

The balance of the sixth convertible note payable at is as follows:

	Mar 31, 2014		Dec 31, 2013
Balance
Proceeds from promissory note	$	25,000	$	25,000
Value allocated to additional paid-in capital		25,000		25,000
Balance allocated to convertible note payable		-		-
Amortized discount		5,000		3,750
Balance, convertible note payable	$	5,000	$	3,750

The total discount of $25,000 will be amortized over 5 years starting April, 2013. Accordingly, the annual interest rate is 20% and for the three months ended March 31, 2014 $1,250 was recorded as interest expense. As at March 31, 2014 the unamortized discount was $20,000.