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CONVERTIBLE PROMISSORY NOTES PAYABLE
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3 Months Ended |
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Mar. 31, 2012
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| Convertible Promissory Notes Payable Disclosure [Abstract] | |
| CONVERTIBLE PROMISSORY NOTES PAYABLE | NOTE F - 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 note holders have 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.
The Company is obligated under two other Convertible Promissory Notes. The Convertible Notes are unsecured and 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 quarter ended March 31, 2012 the Company recognized $13,498 as a gain in the beneficial conversion feature. |