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LOANS PAYABLE
9 Months Ended
Sep. 30, 2016
LOANS PAYABLE [Text Block]

NOTE 4 – LOANS PAYABLE

Loans payable include a loan from a non-related party that was issued for $75,000 on November 16, 2010 and was repayable on May 16, 2011 with a 10% premium. The loan is currently in default, and the Company has not received any notices from the loan holder with respect to the defaults.

In 2012, the Company entered into various loan agreements totaling $681,500 at interest rates ranging from 15%-25%. These loans are all currently in default. The creditors have not called these loans.

In 2013, the Company entered into various loan agreements totaling $268,500, at interest rates ranging from 15%-16%. These loans are all currently in default. The creditors have not called these loans.

Other than loans from related parties, there were no new loans advanced in the first nine months of 2016. During the first nine months of 2015 lenders advanced $229,000 in non-interest bearing demand loans.

During the three months ended September 30, 2016 and 2015, interest expense related to these notes was $43,153 and $36,908, respectively. During the nine months ended September 30, 2016 and 2015, interest expense related to these notes was $129,478 and $122,245, respectively, and the interest paid was $20,250 and $19,150, respectively.