Annual report pursuant to Section 13 and 15(d)

Note 9- Notes Payable

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Note 9- Notes Payable
12 Months Ended
Dec. 31, 2012
Notes  
Note 9- Notes Payable

NOTE 9– NOTES PAYABLE

 

On March 5, 2012, the Company issued an aggregate of four unsecured promissory notes payable for $11,325 each (aggregate of $45,300 due June 5, 2012 with a stated interest rate of 20% per annum, with fixed interest of $2,265 due upon maturity.   In connection with the issuance of the above described promissory notes, the Company issued 100,000 of its common stock per note (total of 400,000).  

 

The Company recorded a debt discount of $3,000 per note based on the fair value of the Company's common stock at the issuance date of the promissory notes.  The discount is amortized ratably over the term on the notes. As of December 31, 2012, all four promissory notes were paid in full.

 

 

On April 3, 2012, the Company issued a unsecured promissory note payable for $150,000 due April 3, 2013 with a stated interest rate of 20% per annum, which will result in a fixed interest payment of $30,000 due upon maturity.   In connection with the issuance of the above described promissory note, the Company issued 1,000,000 of its common stock.  During the year ended December 31, 2012, the Company repaid $50,000 of the unsecured promissory note.

 

The Company recorded a debt discount of $25,100 based on the fair value of the Company's common stock at the issuance date of the promissory note.  The discount is amortized ratably over the term on the notes.