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Note Payable
6 Months Ended
Jun. 30, 2011
Notes to Financial Statements  
Note 7.Note Payable

During the quarter ended June 30, 2011, in connection with the settlement of certain litigation related to OND the Company settled its obliqations to PRIA Diagnostics, LLC ("PRIA") in consideration for the payment to PRIA of $5,0000 and the issuance of 500,000 shares of the Company's common stock with a deemed value of $15,000.

 

On May 19, 2011, the Company reached an agreement with a lender to provide $100,000 in debt financing, of Amounts loaned under the terms of the agreement bear simple interest at 3% annually, which amount increases to 12% upon an event of default.  All amounts loaned under the terms of the agreement are due and payable the lender on or before November 19, 2011.In addition, a company shareholder advanced $5,000 to the Company, under terms and conditions to be determined.

 

Concurrently with this debt financing commitment, the lender agreed to surrender and cancel 2,069,000 warrants held by it, and in consideration therefore the Company issued the lender 2,069,000 shares of common stock valued at $62,070.