General form of registration statement for all companies including face-amount certificate companies

LOANS FROM RELATED PARTY

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LOANS FROM RELATED PARTY
12 Months Ended
Dec. 31, 2012
Notes to Financial Statements  
Note 9. LOANS FROM RELATED PARTY

Notes payable is as follows:

 

    December 31,     December 31,  
    2012     2011  
             
Unsecured promissory note dated December 2, 2011 and due December 2, 2012, issued to an entity controlled by Michael James an officer of the Company, bearing interest at a rate of 15% per annum. The maturity date has been extended until February 28, 2013. Interest shall be paid in cash or common stock at the holders’ option. Principal in the amount of $15,000 has been paid during the twelve months ended December 31, 2012,   $ 35,000     $ 50,000  
                 
Unsecured promissory note dated December 2, 2011 and due December 2, 2012, issued to Michael Nahass a director of the Company, bearing interest at a rate of 15% per annum. The maturity date has been extended until February 28, 2013. Interest shall be paid in cash or common stock at the holders’ option. Principal in the amount of $30,002 has been paid during the twelve months ended December 31, 2012.     69,998       100,000  
                 
    $ 104,998     $ 150,000  

 

The unsecured demand notes due to related parties have accrued interest of $26,383 as of December 31, 2012.