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6) Related Party Transactions
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6 Months Ended |
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Jun. 30, 2012
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| Notes | |
| 6) Related Party Transactions | 6) RELATED PARTY TRANSACTIONS
As of June 30, 2012, the Company’s President has advanced the Company $500.
During 2007, Martin Honig, a former Director and current stockholder of the Company loaned the Company $8,000 on a non-interest bearing basis in order to provide the Company with working capital. In July 2008 this same individual loaned the Company an additional $5,000 to be used for working capital. The Company repaid $7,000 to Mr. Honig. In March 2012, Mr. Honig loaned the Company an additional $6,000. On May 25, 2012, Mr. Honig elected to convert his $6,000, 10.0% Loan into common stock of the Company. In the conversion transaction, Mr Honig received 6,000,000 shares of common stock in exchange for the loan and no accrued interest. The Company recorded a loss on debt conversion of approximately $3.3 million. After the conversion Mr Honig had a balance remaining of $-0- as of June 30, 2012. Marshal Shichtman, the Company’s securities counsel and a stockholder of 2,500,000 common shares has billed the Company $132,000 for legal services performed thru June 30, 2012. $122,000 is currently outstanding and reported in accounts payable in the accompanying financial statements. The Company incurred legal fees for services provided by Marshal Shichtman in the amounts of $30,000 and $18,000 for the three month periods ended June 30, 2012 and 2011, respectively, and $60,000 and $36,000 for the six month periods ended June 30, 2012 and 2011, respectively.
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