4. LOANS PAYABLE

6 Months Ended

Jun. 30, 2013

Notes to Financial Statements

NOTE 4 - LOANS PAYABLE

The Company has the following outstanding loans:

i. $5,000: unsecured, bearing interest at 15% per annum, which was due on April 20, 2012. The loan balance remains outstanding to date and the Company intends to renegotiate the repayment terms with the lender. The loan was originally $10,000. During the year ended December 31, 2012, loan principal of $5,000 together with accrued loan interest of $1,000 was converted to a subscription for 120,000 shares of the Company’s common stock. Those shares were issued on July 24, 2012.  As at June 30, 2013 the Company has accrued a total of $1,663 in interest payable on this loan.

ii. $75,000: unsecured, bearing interest at 10% per annum, which was due on August 2, 2011. The loan balance remains outstanding to date and the Company intends to renegotiate the repayment terms with the lender. In 2011, the Company issued 250,000 shares of its common stock as additional consideration for receiving the loan. As at June 30, 2013 the Company has accrued a total of $15,288 in interest payable on this loan.

iii. Short-term, unsecured, non-interest bearing loans with no specific terms of repayment totaling $20,691 ($21,750 CAD) were received during the six months ended June 30, 2013.