Quarterly report pursuant to sections 13 or 15(d)

NOTE 9 - PROMISSORY NOTES

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NOTE 9 - PROMISSORY NOTES
6 Months Ended
Jun. 30, 2011
Short-term Debt [Text Block]
NOTE 9 – PROMISSORY NOTES

On April 11, 2011 the Company entered into two promissory notes each in the face amount of $275,000 with two accredited investors.  Each note bears 7% interest and principal and interest has a maturity date of September 15, 2011. The Company can repay the notes at any time without penalty. These notes are secured by all of the Company’s assets. As partial consideration for the loans, the Company issued two shares of convertible preferred stock (one share to be issued to each Investor; the “shares”) mandatorily convertible into Class A common stock equal to 1% of the outstanding common stock at the time of conversion (no later than January 15, 2012) (see Note 10). On June 30, 2011, the Company made a partial payment in the amount of $50,000. Accrued interest at June 30, 2011 was $8,556.