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. This note is currently past due. 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, 2014 total accrued interest on the notes is $3,251.

As of June 30, 2014, a shareholder advanced the Company a total of $98,900 for a short term loan. The loan accrues interest at 6% and is due on demand. As of June 30, 2014 total accrued interest on the loan is $6,765.

As of June 30, 2014, a shareholder advanced the Company a total of $85,000 for a short term loan. The loan accrues interest at 6% and is due on demand. As of June 30, 2014 total accrued interest on the loan is $2,881.

As of June 30, 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 period ended June 30, 2014, the Company executed multiple promissory notes with a third party for total proceeds of $203,500. The loans are uncollateralized, bear interest at 3% and mature in six months. On June 16, 2014 the Company converted $180,500 of principle and $859 of interest into 850,000 shares of common stock. As of June 30, 2014 total accrued interest on the remaining note dated June 18, 2014 for $23,000 was $23.

The Company also has financing loans for its product liability and Director and Officer Insurance. As of June 30, 2014 and December 31, 2013 the loans have a balance of $24,435 and $7,369, respectively, they bear interest at 5.99% and are due within one year.