Subsequent Events

9 Months Ended

Sep. 30, 2013

14. Subsequent Events

$160,000 Notes Issued on November 12, 2013

On November 12, 2013, the Company issued two convertible promissory notes in an aggregate amount of $160,000 (the “Notes in the Aggregate Amount of $160,000”) to two accredited investors who are associated with each other (the “November 12, 2013 Note Investors”). The Company received proceeds in the amount of $160,000. The Notes in the Aggregate Amount of $160,000 provides for maturity on July 31, 2014 (the “Maturity Date”) and provides for 10 percent interest until maturity. The November 12, 2013 Note Investors have a right, at the investors’ sole discretion, to convert the note into equity under certain circumstances at $0.10 per share. If the Notes in the Aggregate Amount of $160,000 are not paid off by the Company, with the consent of the investors, by the Maturity Date or converted in to equity at the election of the investors prior to the Maturity Date, the note will accrue interest in the amount of 15% from the Maturity Date until the note is paid in full. Under the terms of the Notes in the Aggregate Amount of $160,000, the Company agreed to seek shareholder approval to increase the number of authorized shares by at least 10,000,000 shares on or before July 30, 2014. The Company will use the proceeds for working capital and for general corporate purposes.