Convertible Note Payable

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Convertible Note Payable

NOTE 10 – CONVERTIBLE NOTE PAYABLE

A summary of convertible debentures payable as of June 30, 2013 and December 31, 2012 is as follows:

	June 30, 2013			December 31, 2012
Convertible note, accrue interest at 8% per annum and mature on November 23, 2013	$	50,000		$	50,000
Debt discount - beneficial conversion feature		(19,795	)		(44,795	)
Convertible note, net unamortized discount	$	30,205		$	5,205

On November 23, 2012, the Company entered into an unsecured Note Payable Agreement with Gary Schahet (the “Buyer”) pursuant to which the Company issued $50,000 of an unsecured convertible note (the “Note Payable”). The Note Payable accrues interest at a rate of 8% per annum and matures on November 23, 2013. The Lender may also convert all or a portion of the Note at any time at a price equal to the lesser of (i) $0.25, or (ii) ninety percent (90%) of a Subsequent Financing Price (price per share paid by investors in a subsequent financing), or (iii) ninety percent (90%) of a Change of Control price (per share consideration paid in a change of control transaction.

The Company has determined the value associated with the beneficial conversion feature in connection with the notes to be $50,000. The aggregate beneficial conversion feature has been accreted and charged to financing expense in the amount of $12,500 and $25,000 during the three and six months ended June 30, 2013 and $5,205 as of December 31, 2012, respectively. During the three and six months ended June 30, 2013, the Company recorded interest expense of $1,000 and $2,000, respectively.