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Notes payable - Related Party
 12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
Note 5. Notes payable - Related Party

Note 5: Notes payable – Related Party

 

There were no related party notes payable outstanding at December 31, 2011 or 2010.  During the year ended December 31, 2010, we converted three unsecured related party notes payable totaling $73,525 into stock of the company as follows:

 

· At December 31, 2009, a Note Payable to our Chief Executive Officer in the amount of $23,525 was outstanding for various obligations the former company was party to, including former legal counsel, former transfer agent services, and tax obligations with the state of Delaware. The unsecured note carried interest in the amount of 8% per annum and was due on December 31, 2008. The note was in default at December 31, 2009.  The note and accrued interest was converted into 26 shares of Series A preferred stock during the year ended December 31, 2010.

 

· At December 31, 2009, two Unsecured Notes Payable to two prior Directors of the Company totaling  $50,000 were outstanding, with interest of 8%, due on receipt by the Company or its designated escrow agent of an aggregate of $1,000,000 in gross proceeds of a Private Placement.  The notes and accrued interest were converted into 45,897 shares of common stock during the year ended December 31, 2010.