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Notes Payable Related Party
 9 Months Ended
Sep. 30, 2012
Related Party Transactions [Abstract]  
Notes Payable Related Party

3. NOTES PAYABLE - RELATED PARTY

 

On February 1, 2011, The Albert E. Whitehead Living Trust, under the terms of a convertible note, advanced $100,000 to the Company. The note has a term of one (1) year and accrues interest at the rate of four percent (4%) per annum. No principal or interest has been paid on the note. At September 30, 2012, $9,012 of interest had accrued. The principal and interest owed under the note may be converted by the holder into common stock at the conversion price of $0.10 per share. The maturity date of the note has been extended to February 1, 2013. In January 2012, The Albert E. Whitehead Living Trust advanced an additional $33,603 to the Company.

 

In April 2012, the Company executed another convertible note in favor of The Albert E. Whitehead Living Trust for the January 2012 advance of $33,603 and an additional $100,000 of proceeds. The note is due in April 2013 and accrues interest at the rate of four percent (4%) per annum. The principal and interest owed under the note may be converted by the holder into common stock at the conversion price of $0.05 per share.

 

On August 28, 2012, The Albert E. Whitehead Living Trust, under the terms of a promissory note, advanced $25,000 to the Company. The note has a term of three (3) months and accrues interest at the rate of four percent (4%) per annum. No principal or interest has been paid on the note.