6. Significant Transactions With Related Parties

3 Months Ended

Jun. 30, 2012

6. Significant Transactions With Related Parties:

6. Significant Transactions With Related Parties

6.  SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES

The Chief Executive Officer (CEO) and two Directors have acquired 72% of the outstanding common stock of the Company. During the six months ended June 30, 2012, the Company received loans from the CEO and Directors in the amount of $2,285 and repaid prior loans of $87. From inception (April 22, 1997) to March, 31, 2012, net loans from the CEO and Directors are $48,351, which are payable on demand.

As of January 1, 2012, the Company’s Board of Directors approved a modification of the terms of these loans to include an annual, simple interest rate of 4%. Related interest expense for the six months ended June 30, 2012 was $930.