NOTES PAYABLE - RELATED PARTIES

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Note 5. NOTES PAYABLE - RELATED PARTIES

During the year ended December 31, 2011, several board members and shareholders loaned the company money to help fund operations.  The loans are all secured by the Company’s common stock, bear 8% interest and were due during the year ended December 31, 2011.

In 2012, the Company issued a promissory note for $50,000 to a former officer.  The Note is secured by the Company’s stock and bears 8% interest.  All other debts have been settled with the former owner.

In September 2012, an officer and shareholder loaned $100 to the Company.  The loan is unsecured, bears 8% interest and is due on demand.

Total interest expense on the related party loans was $4,479 and $1,530 for the years ended December 31, 2012 and 2011, respectively.