NOTE 6 – 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 March 31, 2014 total accrued interest on the notes is $2,983.

As of March 31, 2014, an individual advanced the Company $97,500 for a short term loan. The loan accrues interest at 6% and is due on demand. As of March 31, 2014 total accrued interest on the loan is $5,306.

As of March 31, 2014, an individual advanced the Company $85,000 for a short term loan. The loan accrues interest at 6% and is due on demand. As of March 31, 2014 total accrued interest on the loan is $1,609.

As of March 31, 2014, 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.

During the quarter ended March 31, 2014, the Company executed three separate promissory notes with an individual for total proceeds of $84,000. The loans are uncollateralized, bear interest at 3% and mature in six months. As of March 31, 2014 total accrued interest on the three notes was $119.

During the year ended December 31, 2013, an individual advanced the Company $276,257 for a short term loan. The loan accrued interest at 6% and was due on demand. As of December 31, 2013 all principle and interest on the loan was repaid in full.

The Company also has financing loans for its product liability and Director and Officer Insurance. As of March 31, 2014 and December 31, 2013 the loans have a balance of $38,243 and $7,369, respectively, they bear interest at 5.99% and are due within one year.