On November 30, 2009, a shareholder, director and officer (a related party) of the company advanced $43,000 to the Company for working capital needs. In consideration of such advance, the Company issued a Promissory Note with interest at 3% per annum due November 1, 2011. The maturity date for this note was extended to March 31, 2012. On September 30, 2011, the same shareholder advanced $62,000 to the Company for working capital needs. In consideration of such advance, the Company issued a Promissory Note with interest at 6% per annum due October 31, 2011. The maturity date for this note was extended to March 31, 2012. On December 9, 2011, a shareholder advanced $7,000 to the Company for working capital needs. In consideration of such advance, the Company issued a Promissory Note with interest at 6% per annum due March 31, 2012. The notes are unsecured and are currently payable upon demand.

On October 31, 2011, a shareholder advanced $200,000 to the Company for working capital needs. In consideration of such advance, the Company issued a Promissory Note with interest at 15% per annum due March 31, 2012. This note is secured by substantially all assets of the Company up to the face value of the note. On November 30, 2011 a common stock purchase warrant to acquire 100,000 shares of common stock exercisable for a term of two years at $0.50 per share was issued to the stockholder and the interest rate was reduced to 10%.