Advances Payable - Related Party of Discontinued Operations
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9 Months Ended |
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Sep. 30, 2012
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Advances Payable - Related Party Of Discontinued Operations | |
Note 10. Advances Payable - Related Party of Discontinued Operations |
As a result of the reverse merger, the Company assumed $169,894 of advances payable due to Jay Rifkin, a current director who is also a former officer of the Company. These advances bear interest at 9% per annum, have no fixed terms of repayment and are unsecured. Accrued interest on these advances at September 30, 2012 and 2011 was $19,758 and $4204, respectively and interest expense for the nine months ended September 30, 2012 and 2011 was $11,644 and $4,204, respectively. As previously disclosed, the Company and Mr. Rifkin had agreed to convert this balance to a Convertible Promissory Note Payable with the same terms and conditions of the notes discussed in Note 11. As of the date of this filing, the Company and Mr. Rifkin have agreed not to convert this balance from its current terms. |