Related party transactions

6 Months Ended

Jun. 30, 2012

Related party transactions [Abstract]

Related party transactions

NOTE 6: Related party transactions

On December 31, 2010, the Company entered into a promissory note with an officer of the Company, for $13,000. The terms of the loan were to repay of the loan in the amount of $13,000 with a 10% annual interest to start as of December 31, 2010, the Company is not in default. As of June, 2012, we owed $13,000 plus accrued interest in the amount of $1,950, and the note is due on demand.

On December 31, 2010, the Company entered into a promissory note with an officer of the Company, for $9,760. The terms of the loan were to repay of the loan in the amount of $9,760 with a 10% annual interest to start as of December 31, 2010, the Company is not in default. As of June 30, 2012, we owed $9,760 plus accrued interest in the amount of $1,464, and the note is due on demand.

On December 31, 2010, the Company entered into a promissory note with an employee of the Company, for $9,500. The terms of the loan were to repay of the loan in the amount of $9,500 with a 10% annual interest to start as of December 31, 2010, the Company is not in default. As of June 30, 2012, we owed $9,500 plus accrued interest in the amount of $1,425, and the note is due on demand.

On April 1, 2009, we modified the verbal loan agreement entered into on June 30, 2008 with a director of the Company, which had a balance of $50,000 as of December 31, 2008, by making it a formal promissory note, capitalizing accrued interest into the principal ($36,000) and including an annual interest rate of 10%. On August 15, 2011, we repaid a portion of the note obligation in the amount of $15,000 which reduced our principle obligation from $86,000 to $71,000. As of June 30, 2012, we owed $71,000 plus accrued interest in the amount of $26,511, and the note is due on demand.

On November 5, 2008, the Company entered into agreement promissory note with a director of the Board, for $77,000. The terms of the loan were to repay of the loan in the amount of $72,000 with the addition of a $5,000 fee for interest or incur a $250 a day late fee if paid after December 5, 2008. On April 1, 2009, the loan agreement was modified to remove the $250 a day late fees and add an annual interest rate of 10%. As of June 30, 2012, we owed $79,913 plus accrued interest in the amount of $54,828, and the note is due on demand.