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LIABILITIES & NOTES PAYABLE
12 Months Ended
May 31, 2012
LIABILITIES & NOTES PAYABLE  
LIABILITIES & NOTES PAYABLE
NOTE 7 - LIABILITIES & NOTES PAYABLE
 
On February 29, 2012, Company entered into a Promissory Note with R. Thomas
Kidd, our then Chief Executive Officer of the Company, and Infinite Funding,
Inc. ("IFI"). This Note replaces four promissory notes issued by IFI to the
Company as more fully described below.
 
Effective March 3, 2011, we obtained an unsecured loan in the amount of $75,000
from Infinite Funding, Inc. ("IFI") as evidenced by a Promissory Note from the
Company to Infinite Funding, Inc. dated March 3, 2011 (the "IFI Note"). The Note
was amended three times to extend the due date and was first amended on June 9,
2011, a second time on September 28, 2011, and a third amendment on December 9,
2011. Pursuant to the amendments, the Company agreed to pay extension fees of
$30,000, thereby increasing the principle balance of this Note to $105,000.
 
Effective June 10, 2011, we obtained an unsecured loan in the amount of $75,000
from Infinite Funding, Inc. ("IFI") as evidenced by a Promissory Note from the
Company to Infinite Funding, Inc. dated June 10, 2011 (the "IFI Note"). The Note
was amended two times to extend the due date and was first amended on September
28, 2011 and again on December 9, 2011. Pursuant to the amendments, the Company
agreed to pay extension fees of $20,000, thereby increasing the principle
balance of this Note to $95,000.
 
Effective September 28, 2011, we obtained an unsecured loan in the amount of
$40,000 from Infinite Funding, Inc. ("IFI") as evidenced by a Promissory Note
from the Company to Infinite Funding, Inc. dated September 28, 2011 (the "IFI
Note"). The Note was amended to extend the due date on December 9, 2011.
Pursuant to this amendment, the Company agreed to pay an extension fee of
$10,000, thereby increasing the principle balance of this Note to $50,000.
 
Effective December 9, 2011, we obtained an unsecured loan in the amount of
$100,000 from Infinite Funding, Inc. ("IFI") as evidenced by a Promissory Note
from the Company to Infinite Funding, Inc. dated December 9, 2011 (the "IFI
Note").
 
As a result of consolidating the aforementioned debt, the Company is now
obligated under a single Promissory Note dated February 29, 2012 in the
aggregate principle amount of $355,645 along with $2,689 in accrued interest.
The Note is due on October 15, 2012 and accrues interest at 3% per annum. In
addition, R Thomas Kidd executed a Personal Guarantee of the Note, whereby Kidd
guarantees the payment of $100,000 of the principle balance in an Event of
Default pursuant to Article III of the Note.
 
On March 2, 2012, the Company entered into a Master Credit Agreement with
Infinite Funding, Inc. which provides for a non-revolving line of credit. The
Company may request advances under the lending facility by issuing borrowing
certificates to the Lender. Each borrowing certificate, together with simple
interest accrued at 8% per year, becomes payable one year after the date of the
advance received. Infinite Funding has amended the Master Credit Agreement,
increasing the amount of the Lending Facility from $150,000 to $200,000. As of
May 31, 2012, the Company received $190,000 in advances and the Company has
accrued $1,375 in interest.