Quarterly report pursuant to Section 13 or 15(d)

Note 5 - Notes Payable & Accrued Interest

Note 5 - Notes Payable & Accrued Interest

3 Months Ended

Jun. 30, 2012

Note 5 - Notes Payable & Accrued Interest:

Note 5 - Notes Payable & Accrued Interest

NOTE 5 – NOTES PAYABLE & ACCRUED INTEREST

The Company has four non-collateral notes payable outstanding. The first note is for $90,000 dated 2/3/2010, bearing simple interest of 6%. The second note is for $10,000 dated 4/5/2011, bearing simple interest of 6%. The third note is for $7,500 dated 9/1/2011, bearing simple interest of 6%. The three notes principle and interest are due three years from the date of issuance. The fourth note in the amount of $14,067 is dated 2/24/12. The note requires nine monthly payments of $1,607, bearing annual interest of 6.7%. The current balance on this fourth note at June 30, 2012 is $7,902.

Notes payable at June 30, 2012 and December 31, 2011 consisted of:

	June 30, 2012	December 31, 2011

Notes Payable	$ 115,402	$	107,500

Total Notes Payable	115,402		107,500

Due within one year	(97,902)		-
Long Term Debt	$ 17,500	$	107,500

Total accrued interest on all outstanding notes payable at June 30, 2012 and December 31, 2011 was $14,175 and $10,950.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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