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CONVERTIBLE PROMISSORY NOTES PAYABLE
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12 Months Ended |
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Dec. 31, 2011
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| Convertible Promissory Notes Payable Disclosure [Abstract] | |
| CONVERTIBLE PROMISSORY NOTES PAYABLE | NOTE 10- CONVERTIBLE PROMISSORY NOTES PAYABLE
The Company entered into a Convertible Promissory Note in July 2010. The Convertible Note accrues interest at 18% per annum which is payable and due quarterly. The noteholder has the option to convert any unpaid note principal and accrued interest to the Company’s common stock at a rate of 75% of the average closing price of the last ten days of trading any time after the issuance date of the note.
During 2011, the Company entered into two Convertible Promissory Notes. The Convertible Notes accrue interest 8% per annum payable upon maturity. The note holders have the option to convert any unpaid principal and accrued interest at any time to the Company’s common stock at a rate of 55% of the average three trading days low out of the immediately preceding ten trading days.
In accordance ASC 470-20, the Company allocated, on a relative fair value basis, the net proceeds amongst the common stock, convertible notes and warrants issued to the investors. During the year ended December 31, 2011 the Company recognized $34,648 as a loss in the beneficial conversion feature. |