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Convertible Note Payable
3 Months Ended
Mar. 31, 2012
Debt Disclosure [Abstract]  
Convertible Note Payable

NOTE 6 – CONVERTIBLE NOTE PAYABLE

 

On September 28, 2011 the Company borrowed $100,000 from an unrelated third party entity in the form of a convertible note. The note bears interest at a rate of five percent per annum, with principal and interest due in full on September 24, 2012. The note is convertible at any time, at the option of the note holder, into shares of the Company’s common stock, at ten percent below the current market price on the date of conversion. For purposes of the note, “current market price” is defined as the average of the lowest three daily closing prices per share for the five business days prior to the date of conversion.

 

Pursuant to this conversion feature, the Company recognized a discount on convertible debt in the amount of $93,976 on the note date. As of December 31, 2011 the Company had amortized $24,649 of the debt discount to interest expense, leaving $69,327 in unamortized debt discount at December 31, 2011.