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CONVERTIBLE NOTES PAYABLE
6 Months Ended
Jun. 30, 2012
CONVERTIBLE NOTES PAYABLE [Abstract]  
CONVERTIBLE NOTES PAYABLE

NOTE 4 - CONVERTIBLE NOTES PAYABLE

 

Between the dates of January 3, 2012 and March 31, 2012, the Company entered into agreements to issue secured convertible promissory notes in the aggregate principal amount of $120,000 (the "Notes") to certain accredited investors. The Notes bear interest at an annual rate of 7% and are payable on or before 12 months from the date of issuance. The Notes are secured by all of the assets of the Company and includes customary provisions concerning events of default. In addition, the Notes may be converted at any time, at the option of the holder, into shares of the Company's common stock at a conversion price of $0.125 per share, subject to adjustment. During the three months ended June 30, 2012 the Company received an additional $35,000 from the accredited investors under the same terms. Accrued interest amounted to $6,474 at June 30, 2012. There was no beneficial conversion expense recorded as the fair value of the common stock was less than the exercise price.