Quarterly report pursuant to sections 13 or 15(d)

5. RELATED PARTY TRANSACTIONS

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5. RELATED PARTY TRANSACTIONS
9 Months Ended
Sep. 30, 2012
Notes to Financial Statements  
NOTE 5 - RELATED PARTY TRANSACTIONS

 

Through December 31, 2011, the CEO advanced $197,820 to the Company and $60,000 to Target to fund start-up costs and operations of the Company and Target.  Advances by the CEO carry an interest rate of 6.5% and were due on June 29, 2013. On May 7, 2012, the Company’s CEO and COO entered into promissory notes to advance to the Company an aggregate of $40,000.  The notes accrue interest at 6.5% per year were due June 30, 2013.  As of September 30, 2012, and December 31, 2011, $39,210 and $25,641, respectively, of accrued interest had been included in accrued expenses on the accompanying balance sheet.  On August 6, 2012, the outstanding notes of $297,820 were amended to extend the maturity dates to June 29, 2014. The CEO intends, but is not legally obligated, to fund the Company’s operations in this manner until the Company raises sufficient capital.