2 RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2012

Related Party Transactions [Abstract]

2 RELATED PARTY TRANSACTIONS

NOTE 2 – RELATED PARTY TRANSACTIONS

Rent expense of $9,246 was recognized during the years ended December 31, 2012 and 2011 for contribution of office space by an affiliate. The Board of Directors valued the contribution based on rent for similar space in the local area.

Our President and Director contributed her time and attendance during 2012 and 2011. We recognized $48,000 for the years ended December 31, 2012 and 2011, in contributed service expense. The Board of Directors valued the contribution based on prevailing rates for similar services in the local area.

During the years ended December 31, 2012 and 2011, we incurred stock transfer agent fees to X- Pedited Transfer Corp., an affiliate, totaling $496 and $534, respectively. At December 31, 2012, the unpaid balance to the affiliate was $3,985, and is included in the accompanying balance sheet as accounts payable, related party. During February 2010, we issued 12,000 shares of our common stock to X-Pedited Transfer Corp. as payment for the December 31, 2009 obligation.

Our affiliates, X-Clearing Corp. and A-Squared Holdings, Inc., have provided us cash since our inception to cover operating expenses pursuant to the terms of unsecured promissory notes.

As of December 31, 2012 and 2011, notes payable to related parties, consist of the following:

	December 31,
	2012		2011
Demand notes payable to affilliate A-Squared Holdings, Inc. issued between February 2008 and November 2011, due on demand not to exceed a maturity date of November 29, 2015, unsecured and bearing interest at 15%, interest payable every 90 days	$	31,361	$	31,361
Demand notes payable to affilliate X-Clearing issued between January 2008 and December 2012, due on demand not to exceed a maturity date of November 29, 2015, unsecured and bearing interest at 15%, interest payable every 90 days	$	41,237	$	29,587
Demand notes payable to affilliate X-Pedited Transfer issued between August 2012, due on demand not to exceed a maturity date of November 29, 2015, unsecured and bearing interest at 15%, interest payable every 90 days	$	1,475	$	-
Total notes payable, related parties	$	74,073	$	60,948

Interest is payable every 90 days, but no interest has been paid to date. Accrued interest payable as of December 31, 2012 and 2011 were $35,311 and $24,351, respectively.