NOTE 5 – RELATED PARTY TRANSACTIONS
Over the course of the Company’s history loans for operating purposes have been made to the Company by the CEO of the Company. The related party notes payable total $825,969 and $809,072 at December 31, 2011 and 2010, respectively. These notes carry interest at 7% and have balloon payments that are due in full on December 31, 2012. One loan is unsecured and the other is a commercial loan under the Uniform Commercial Code and is secured by a blanket lien on the Company’s assets. The secured loan totals approximately $698, 000 as of December 31, 2011. For the year ended December 31, 2011 and 2010, the Company accrued $41,135 and $80,243 in interest expense on these loans, respectively.