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NON-RELATED PARTY CONVERTIBLE PROMISSORY NOTES
12 Months Ended
Sep. 30, 2011
NON-RELATED PARTY CONVERTIBLE PROMISSORY NOTES  
NON-RELATED PARTY CONVERTIBLE PROMISSORY NOTES

NOTE 7 – NON-RELATED PARTY CONVERTIBLE PROMISSORY NOTES

 

On September 10, 2010, the Company borrowed $10,000 under the terms of a convertible note now due September 10, 2012. At the holder’s option, the convertible note converts into 1,000,000 shares of restricted common shares of the Company.  The note is due and payable on September 10, 2012 and bears no interest. In May 2011, the Company borrowed a total of $5,000 under the terms of a convertible note due May 31, 2012.  At the holder’s option, the convertible note converts into 500,000 shares of restricted common shares of the Company.  The note is due and payable on May 31, 2012 and bears no interest. Management evaluated the convertible notes and determined that there is no embedded derivative of the conversion feature of the note. Management evaluated the convertible notes payable and determined that there was no intrinsic value of the conversion option due to the fact that the debt is not convertible at a discount to the market value of the stock.