Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

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Subsequent Events
3 Months Ended
Mar. 31, 2012
Subsequent Events  
Subsequent Events [Text Block]

NOTE 11 - SUBSEQUENT EVENTS

 

The Company has evaluated subsequent events from the balance sheet date through July 2,  2012, the date the financial statements were available to be issued, and has determined that there are no other events to disclose other than the following:

 

Notes Payable issued:

 

Subsequent to March 31, 2012 the Company issued the following promissory notes as follows:

 

Promissory note, $150,000, bearing interest at 20% and repayable on the anniversary date of April 3, 2013 together with 1,000,000 common shares of the Company, secured by accounts receivable of the Company.

 

During April, 2012, the Company began issuing 15%, 3 year convertible debentures in a private placement.  Interest at 15% per annum is to be paid quarterly; however, interest accrued during the first year is deferred.  The debentures are convertible into the Company’s common stock at a price of $0.334 per share, or 3 shares for each $1.00 debenture issued.  The Company, at its option, can close the offering after raising $4 million.  The maximum that can be raised with this private placement is $6 million.