Quarterly report pursuant to Section 13 or 15(d)

Notes Payable

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Notes Payable
3 Months Ended
Mar. 31, 2012
Other Liabilities {1}  
Other Liabilities Disclosure [Text Block]

NOTE 7– 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 is obligated to  issue 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.