NOTE 5 – NOTES PAYABLE

The Company has two non-collateral notes payable outstanding, that bear simple interest at 6% per annum. The first note is dated April 5, 2011 and is for $10,000. The second note is dated September 1, 2011 and is for $7,500.  The notes principle and interest are due three years from the date of issuance. As of June 30, 2013 total accrued interest on the notes is $2,178.

On June 12, 2013, a third non-collateral notes payable dated February 3, 2010 for $90,000, plus $18,000 of accrued interest was forgiven by the note holder. As a result the Company has recorded a $108,000 gain on forgiveness of debt.

During the period ended June 30, 2013, an individual advanced the Company $87,500 for a short term loan. The loan accrues interest at 6% and is due on demand. As of June 30, 2013 total accrued interest on the loan is $1,090.

On May 24, 2013, an individual advanced the Company $20,000 for a short term loan. The loan accrues interest at 6% and is due on demand. As of June 30, 2013 total accrued interest on the notes is $122.

As of June 30, 2013, the Company owed an individual $4,942. The loan accrues interest at 6% and is due on demand. The interest expense is recorded as additional paid in capital.

The Company also has a financing loan for its product liability insurance. As of June 30, 2013 and December 31, 2012 the loan has a balance of $11,183 and $5,346, respectively, bears interest at 7.75% and is due within one year.

The five year maturity of these loans is as follows: