Quarterly report pursuant to Section 13 or 15(d)

NOTE PAYABLE - STOCKHOLDER

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NOTE PAYABLE - STOCKHOLDER
6 Months Ended
Jun. 30, 2014
NOTE PAYABLE - STOCKHOLDER [Abstract]  
NOTE PAYABLE - STOCKHOLDER

NOTE 5 - NOTE PAYABLE - STOCKHOLDER


The Company's notes payable to stockholder classified as current liability at June 30, 2014 and December 31, 2013 consists of the following:


                                 

 

 

June 30,

2014

 

 

December 31,

2013

 

Note Payable

 

Principal

 

 

Interest*

 

 

Principal

 

 

Interest*

 

Stockholder

 

$

50,000

 

 

 

2.5

%

 

$

50,000

 

 

 

2.5

%

-------

* interest rate per month


On January 11, 2012 a stockholder loaned the Company $35,000 at 2.5% interest per month for one year. On April 13, 2012, the stockholder loaned additional principal to the Company in the aggregate amount $25,000. On June 28, 2012, the Company made a $10,000 principal payment on the note. On January 1, 2013, the Company entered into a new agreement with the stockholder to rollover an existing line of credit in the amount of $50,000. The original line of credit was for a total of $60,000 and the Company repaid $10,000 of that obligation during 2012. The new note maintains similar terms and conditions but with a reduction in the monthly fee from 3% to 2.5%. At June 30, 2014 and December 31, 2013 the principal balance on the note was $50,000. At June 30, 2014 and December 31, 2013 the accrued interest on the note balance was $2,458 and $2,458, respectively.