Annual report pursuant to section 13 and 15(d)

NOTE 10 - PROMISSORY NOTES

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NOTE 10 - PROMISSORY NOTES
12 Months Ended
Dec. 31, 2011
Short-term Debt [Text Block]
NOTE 10 – PROMISSORY NOTES

On April 11, 2011 the Company entered into two promissory notes (the “Notes”) each in the face amount of $275,000 with two accredited investors, totaling $550,000. The Notes bears interest at 7% and were paid in full on November 4, 2011. As consideration for the Notes, the Company issued two shares of Series A convertible preferred stock, par value $1.00 per share (the “Series A Convertible Preferred Stock”) (one share to be issued to each investor 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).

For the year ended December 31, 2011, the Company recorded interest expense of approximately $20,000.  The due date for the Notes was extended to November 4, 2011 when these notes were paid in full