Related Party Transactions

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Related Party Transactions

NOTE 6 – RELATED PARTY TRANSACTIONS

As a consequence of the reverse merger, the Company took over obligations consisting of accounts payable of $11,637 (non-related party) and a note payable balance of $313,687 due to Phoenix Productions and Entertainment Group, Inc., a significant shareholder of the Company’s common stock. The terms of the loan agreement do not require payment of interest and repayment of the loan is to begin 15 days after receipt of initial revenues related to projects funded by PPEG loans. Maturity of the loan is perpetual or upon mutual agreement of both parties or if conditions are breached or in default.

Subsequent to the reverse merger, Phoenix Productions and Entertainment Group, Inc. made loans to the Company of $598,407 leaving a balance due as of March 31, 2012 and December 31, 2011 of $862,094 and $912,094 respectively.

During the period from inception (March 24, 2011) to March 31, 2012, Judson Bibb, Director, advanced $22,500 in interest-free, unsecured, due-on-demand funds. As of March 31, 2012 and December 31, 2011 $22,500 and $22,500, respectively, remains due and payable.