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Note Payable
3 Months Ended
Mar. 31, 2013
Debt Disclosure [Abstract]  
Notes Payable

NOTE 6 - NOTE PAYABLE

 

Mary Passalaqua

 

On October 20, 2011, the Company was presented with an Amended Convertible Promissory Note by Mary Passalaqua. In the revised agreement Ms. Passalaqua requested that the outstanding portion of such note be paid in shares in such quantity that will satisfy the debt of $125,000. As a second step in this conversion process, Mary Passalaqua requested the conversion of $20,000 into shares of the Company’s common stock. To satisfy this request, the Company instructed its transfer agent to issue Mary Passalaqua 3,500,000 shares of its common stock. Upon conversion of the $20,000, the balance of such note was $105,000 plus accrued interest.

 

On August 5, 2010, the Company was presented with an Amended Convertible Promissary Note by Mary Passalaqua. In the revised agreement, Ms. Passalaqua requested that the outstanding portion of such note be paid in shares in such quanity that will satisfy the debt of $195,000 owned. As the first step in this conversion process, Mary Passalaqua requested the conversion of $70,000 into shares of the Company’s common stock. To satisfy this request, the Company instructed its transfer agent to issue Mary Passalaqua 2,400,000 shares of its common stock. Upon conversion of the $70,000, the outstanding balance of such note was $125,000 plus accrued interest.

 

On April 10, 2007, in connection with reverse merger, the Company assumed a note payable of $250,000 to a former stockholder, Mary Passalaqua. The original term of such note was for one year and had a maturity date of April 5, 2008. The note was extended for an additional year to April 5, 2009 with the same conditions. As such note payable was issued immediately prior to the reverse merger, such issuance was recorded as additional compensation by the Company prior to the reverse merger. Accordingly, such compensation is reflected in the accompanying consolidated balance sheet as the accumulated deficit of the Company, and will not be reflected in the statement of operations, as such compensation expense was structured as an expense prior to the recapitalization.

In November, 2008 the Company settled $35,000 from the outstanding liability, and in May of 2009 the Company settled another $20,000 from the liability. The note payable bears interest at the prime rate (3.25% at March 31, 2013). Interest expense in connection with such note amounted to $49,857 and $49,004 for the year ended at March 31, 2013 and at December 31, 2012, respectively, and was accrued and included in accounts payable and accrued liabilities in the accompanying consolidated balance sheet.

 

Infinite Funding

On July 19, 2011, the Company issued a Promissory Note in favor of Infinite Funding, Inc for the aggregate amount of $49,000. Such note bears interest at 12% per annum.