NOTE 5 – NOTE PAYABLE – STOCKHOLDER

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

On January 11, 2012 a stockholder loaned the Company $35,000 based on purchase orders or invoices that have not been previously factored on a revolving basis at a rate of 3% per month (1.5% interest plus 1.5% penalty fee on the outstanding balance when the company does not remit funds received from the invoices but uses them as working capital) 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 new note maintains similar terms and conditions but with a reduction in the monthly penalty fee from 1.5% to 1%. At September 30, 2014 and December 31, 2013 the principal balance on the note was $50,000. At September 30, 2014 and December 31, 2013 the accrued interest on the note balance was $5,000 and $2,458, respectively.