Quarterly report pursuant to sections 13 or 15(d)

NOTE 8 – NOTE PAYABLE - CONVERTIBLE

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NOTE 8 – NOTE PAYABLE - CONVERTIBLE
9 Months Ended
Sep. 30, 2011
Notes to Financial Statements  
NOTE 8 - NOTE PAYABLE - CONVERTIBLE

NOTE 8 – NOTES PAYABLE – CONVERTIBLE

 

On July 15 and July 18, 2011, the Company received a total of $250,000 from two accredited investors in exchange for one year original issue discount notes in the aggregate amount of $275,000, convertible into the Company’s common stock at a conversion rate of $0.10 per share and bearing interest of 10%, plus five-year warrants to purchase 2,500,000 shares of the Company’s common stock at an exercise price of $0.10 per share. The market value of the stock at the date of issuance of the warrants was $0.10. The warrants are issued as a result of a financing transaction and contain a beneficial conversion feature. As of September 30, 2011, the balance was $253,267.