Related Party Transactions

3 Months Ended

Mar. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

Note 4 – Related Party Transactions

Related Parties

Related parties with whom the Company had transactions are:

Related Parties		Relationship
Hans Pandeya		Chairman, CEO and majority stockholder of the Company
Smartlaunch Systems A/S		An entity owned and controlled by majority stockholder of the Company

Notes Payable – Stockholder

From February 28, 2010 through December 31, 2010, the Company borrowed $81,911 in aggregate from its majority stockholder.  Those notes are due on demand with imputed interest at 3% per annum.  The Company imputed $927 in interest and recorded the same as a capital contribution. At December 31, 2010, those notes payable – stockholder became non-interest bearing demand notes. As of March 31, 2012, the outstanding amount of the note payable was $78,159.

Notes Payable – Related Party

On February 25, 2011, the Company bought 9,000 shares of the newly formed Adcore Aps from Smartlaunch Systems A/S for SEK 654,648 (equivalent to $101,816 based on the spot foreign currency exchange rate) with a promissory note plus interest, payable 360 days from the date of the issuance. The Company recorded the software at its historical value on the books of Smartlaunch of $1,668 as a capital contribution to Adcore and the remainder of the related note payable’s value of $100,148 was recorded as compensation – officer as both Smartlaunch Systems and the Company are under common control of the President and major stockholder of the Company. The Note bears interest at 10% per annum (computed on the basis of a 360-day year), which is payable bi-annually in arrears in two (2) equal installments on the dates 180 days from the date of the issuance and 360 days from the date of the issuance.

On February 28, 2011, Smartlauch Systems A/S and Business Marketing Services, Inc agreed to amend the payment of the interest on the outstanding principal amount from bi-annualy as stated in the Promissory Note dated February 25, 2011 to annually in one installment on 360 days from the date of issuance of the said Promissory Note.

On February 25, 2012, Smartlauch Systems A/S and Business Marketing Services, Inc extended the note for one additional year to be due on February 25, 2013.

Pursuant to Section 830-20-25 of the FASB Accounting Standards Codification, the Company adjusts recorded balances that are denominated in a currency other than the functional currency of the recording entity at each balance sheet date to reflect the current exchange rate.

At March 31, 2012, the principal balance due on the note measured in U.S. Dollars with the spot foreign currency exchange rate was $98,655 resulting in a foreign currency transaction loss of $3,731 for the period then ended, and the Company accrued approximately $11,312 in interest payable.

Advances from Stockholder

From time to time, the majority stockholder of the Company advances funds to the Company for working capital purpose. Those advances are unsecured, non-interest bearing and due on demand.

Advances from the majority stockholder and officer at March 31, 2012 and December 31, 2011 consisted of the following:

	March 31, 2012		December 31, 2011
Advances from the majority stockholder and officer	$	-	$	3,748
	$	-	$	3,748

Free Office Space

The Company has been provided office space by its Chief Executive Officer at no cost.  The management determined that such cost is nominal and did not recognize the rent expense in its financial statements.