5. NOTES PAYABLE

3 Months Ended

Mar. 31, 2013

Debt Disclosure [Abstract]

NOTES PAYABLE

NOTE 5 - NOTES PAYABLE

(a)  NOTES PAYABLE

Notes payable consist of various notes bearing interest at rates from 5% to 9%, which are unsecured, with original due dates between August 2000 and November 2013. Five notes with maturity dates that have passed are currently in default with the remaining note due on demand and thus all notes are classified as current liabilities. At March 31, 2013 and 2012, notes payable amounted to $700,860 and $597,860, respectively. Below is a table summarizing the notes owed by the Company.

Interest Expense
Principal		Interest Rate			3/31/2013		3/31/2012		Maturity
$	292,860		9.00	%	$	6,589	$	6,589	6/27/2010
	192,000		0%			3,360		3,360	On Demand(1)
	18,000		6.00	%		270		270	9/1/2002
	30,000		6.00	%		450		450	9/12/2002
	25,000		5.00	%		313		313	8/31/2000
	40,000		7.00	%		700		700	7/10/2002
	12,000		6.00	%		180		-	4/28/2013
	20,000		6.00	%		300		-	5/17/2013
	12,000		6.00	%		180		-	6/19/2013
	20,000		6.00	%		300		-	7/2/2013
	5,000		6.00	%		75		-	8/3/2013
	19,000		6.00	%		285		-	8/13/2013
	5,000		6.00	%		25		-	10/28/2013
	10,000		6.00	%		41		-	11/16/2013
$	700,860				$	13,068	$	11,682

On February 28, 2013, and March 6, 2013, the Company received proceeds from notes payable lenders. The note amounts were $5,000 and $10,000 respectively, and both bear interest at 6%. The notes mature on 10/28/13 and 11/16/13, respectively, and are unsecured.

(1)  Imputed interest due to 0% interest rate

(b)  CONVERTIBLE NOTES PAYABLE:

On April 12, 2012, the Company engaged in a note agreement with a Company for $100,000. The note is convertible into common shares of the Company at a rate of $.005, to include all fees and interest. The Company recorded a $100,000 discount on the Convertible Note due to this beneficial conversion feature. The discount was accreted over the term of the note, and the net note balance at March 31, 2013 and December 31, 2012 was $100,000, respectively.