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RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2012
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

 

A shareholder of the Company, Globex Transfer, LLC, a stock transfer agent, was engaged in November 2010 to provide stock transfer services. As of December 31, 2012, expenses towards stock transfer agent fee of $800 were included in the outstanding balance payable of $2,139. As of December 31, 2012, $7,700 was due to Robert Guerra, a related party who has paid for audit fees and professional fees for the year 2012.

 

On July 9, 2010, the Company entered into an agreement for services with Cypress, a related party, whereby Cypress acts as consultant to the Company.

 

In exchange for these services, which the Company anticipates will last for a ten month period, the Company agreed to pay Cypress cash fees of $200,000 as well as provide Cypress with 2,958,625 shares of its stock, which effectively transfers control of the Company to Cypress during this period. Because the consulting services began August 1, 2010, amortization into professional fees was $100,000 in 2011 and $100,000 in 2010. Upon receipt of the cash payment of $200,000, Cypress is to return the shares to the Company’s treasury. On November 9, 2011 Cypress agreed to cancel the portion of the agreement to return the shares in exchange for $200,000 as agreed between the directors and Cypress to make way for new management takeover.

 

During the year ended December 31, 2011, three shareholder of the Company loaned a total of $5,300 to help fund operations. These loans were unsecured, due on demand and bore 12% interest. The notes were repaid during the year ended December 31, 2011. Total interest expense related to these loans was $1,236 for the year ended December 31, 2011.

 

During the year ended December 31, 2012, the Company received loans from a shareholder totaling $7,700. The loans are unsecured, non-interest bearing and due on demand. The balance due to the shareholder was $7,700 as of December 31, 2012.