10. Short Term Loan

9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

10. Short Term Loan

10. Short Term Loan

The Company entered into 3 short term loan agreements during the period totalling $313,598.

Loan 1 is with Asher Enterprises Inc. The Company issued a $59,621 convertible promissory note for cash consideration. This note bears 8% annual interest and is due April 15, 2014. The Company has the option to prepay the whole principal amount plus interest plus an interest premium within 180 days of issue date. At conversion, the conversion price is calculated by taking 61% of the lowest 3 trading prices during the ten day trading period prior to conversion date. The Company has repaid this loan in full.

Loan 2 is with JMJ Financial in the amount of $97,795 with an interest rate of 12%. The lender has the right, at any time after 180 days from effective date to convert all or part of the outstanding and unpaid principal sum and accrued interest into shares of common stock.

Loan 3 is with Robert Salna in the amount of $156,182 and was repaid on October 1, 2013.