Loans, Capital lease

6 Months Ended

Jun. 30, 2012

Loans, Capital lease [Abstract]

Loans, Capital lease

NOTE 5: Loans, Capital lease

The following tables represent the outstanding balance of loans for the Company as of June 30, 2012, and December 31, 2011.

	JUNE 30, 2012			DEC 31, 2011
South Bay Capital loan at an interest rate 12%	$	10,925		$	10,925
Trafalgar promissory note		200,000			200,000
Capital lease, line of credit		28,591			28,591
Krochak promissory note		15,000			--
Loans and capital lease sub total		254,516			239,516
Less: current portion loans and capital leases		(251,274	)		(232,407	)
Total	$	3,242		$	7,109

On January 4, 2012, the Company entered into a promissory note agreement. The note bears an interest of 7% annum, payable on demand. As of June 30, 2012, we owed $15,000 plus accrued interest in the amount of $521.

On March 25, 2011, the Company entered into a promissory note agreement which was a part of the Trafalgar Capital settlement agreement. The note bears an interest of 7% annum, and is now due on demand. As of June 30, 2012, we owed $200,000 plus accrued interest in the amount of $17,932.

On July 25, 2008, the Company entered into a loan agreement with South Bay Capital in the amount of $75,926. Per the terms of the verbal agreement no interest was to be accumulated. On December 19, 2008, the Company repaid South Bay in the amount of $65,000. On September 15, 2009, the Company secured the remaining balance of the loan with a written promissory note. The note bears an interest rate of 12% for the remaining balance of $10,925, and was applied retrospectively to the note as of January 1, 2009. As of June 30, 2012, $10,925 of the debt still remains outstanding with total interest of $43,634, and the note is due on demand.

On January 15, 2009, the Company entered into a fair market value capital lease with Konika Copiers. The lease is over a 60 month period; with present lease payments exceeding 90% of fair market value of the property. The Company is currently in default with this lease.

On January 15, 2009, the Company entered into a capital lease for office equipment. The lease is over a 60 month period, with present lease payments exceeding 90% of fair market value of the property. The capital lease is a five (5) year lease at $481 per month. The Company is currently in default with this lease.

On April 1, 2009, the Company entered into a revolving line of credit with Dell Financial in the amount of $25,000. The Company's current outstanding balance on the line of credit as of June 30, 2012 was $7,287. The Company is currently in default with this lease.