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4. Lines of Credit

3 Months Ended

Mar. 31, 2013

Linesof Credit Related Party

4.    Lines of Credit

The Company has two lines of credit as follows:

Creditor	Interest Rate	Borrowing Limit	Repayment Terms	Principal Outstanding	Accrued Interest	Total	Security	Purpose
Chairman	1% per Month	$4,000,000	Due on Demand	$  2,425,905	$  180,317	$ 2,606,222	General Security over Assets	Sales and Marketing Program
Spouse of Chairman	1% per Month	$2,000,000	Due on Demand	2,000,000	355,718	2,355,718	General Security over Assets	Operations, Product Development
Total				$  4,425,905	$ 536,035	$ 4,961,940

On March 6, 2011, the Chairman of the Company established a line of credit of up to $2,500,000, increased to $4,000,000 on January 29, 2013, with the Company for the exclusive purpose of funding the costs of a comprehensive sales and marketing campaign.

As consideration for the two lines of credit, to March 31, 2013 and December 31, 2012, the Company has granted 124,250,000 options.

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- Definition

Description of a contractual arrangement, letter of credit, with a related party lenders, under which borrowings can be made up to maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line of credit. As consideration for the lines of credit the related parties are granted options.

+ References

No definition available.

+ Details

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