Note 5: Accrued Expenses

3 Months Ended

Mar. 31, 2013

Notes

Note 5: Accrued Expenses

Note 5: Accrued Expenses        

Accrued expenses consisted of the following at March 31, 2013 and December 31, 2012:

	2013	2012
Accrued Wages	$315,653	$285,653
Accrued Directors' Fees	$    8,000	$    8,000
Total Accrued Expenses	$323,653	$293,653

Wages are accrued under an employee agreement entered into on the 20th day of April, 2007 by and between the Company and its President. According to the agreement, employee's starting salary is $6,000 per month during the first 90 days following execution of the agreement or until $500,000 in capital is raised. After such period of time, employee's salary shall be increased to $10,000 per month. Should the company determine it in the best interest not to pay employee's entire monthly compensation, at any time, any such compensation shall be treated as deferred compensation and will accumulate on the books and provided to employee, at employee's sole discretion, taking into consideration the funds available and the best interest of the Company.

The accrued wages owed under the employment agreement as of March 31, 2013 and December 31, 2012, respectively, were $315,653 and $285,653.

Salary expense to the related party was $30,000 and $30,000 for the period ended March 31, 2013 and March 31, 2012, respectively.

 The Board of Directors passed a resolution on October 15, 2011 to compensate Directors, Secretary, Treasurer, CEO, President and Board Chairman by issuing common stock annually. This policy is retroactive with an effective date of January 1, 2010. Per the policy the Company owed Kurtis Cockrum who is a Director, CEO, President and Board Chairman $6,000 worth of common stock, James Clarke who is a Director, Secretary and Treasurer $2,000 worth of common stock as of December 31, 2011. This amount has been recorded as director fees at December 31, 2011.  The entire balance of $8,000 was still outstanding at March 31, 2013.