NOTE 7 – NOTES PAYABLE |
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09/30/11 |
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12/31/10 |
Notes payable consist of the following for the periods ended; |
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Peacock Settlement Note of 2008 resettled three existing notes as stated on November 26, 2008 with a simple interest rate with a simple interest rate of 3% per annum. Note holder has right on 30 days written notice to demand stock totaling no more than 9.9% of total outstanding shares current and not allowing cumulative total to exceed 30% adjusting with new issuanced for dilutive purposes |
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$ |
357,430 |
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$ |
357,430 |
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Debentures at 10%, unsecured, were to be convertible into common shares at the option of the holder, all debentures are currently in default |
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10,383 |
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10,383 |
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Convertible note from a related party dated June 28, 2004 with a stated rate of 10% per annum payable quarterly. The holder has the right to convert upon written request at 80% of market of the five previous trading days of the conversion request |
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30,000 |
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30,000 |
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Convertible note payable, accrues with an interest at a Rate of 6.0% per annum, two-year term. Currently in default |
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42,988 |
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42,988 |
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Short term unsecured working capital demand notes, with stated interest rate of 10%. Reclassified back into notes payable after the Company confirmed status during the last fiscal audit of the 2010 year-end |
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20,000 |
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0 |
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Virginia Roberts investment was originally stated as Minority Interest investment in 2003 financials, was reclassed in 2004 to secured demand note against Canyon Shadows Investment and entitled note holder to 21% if Investment distributions, at no less than $5,000 per quarter |
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200,000 |
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200,000 |
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Total Notes Payable |
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660,801 |
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640,801 |
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Less Current Portion |
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660,801 |
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640,801 |
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Long Term Notes Payable |
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$ |
0 |
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$ |
0 |
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The aggregate principal maturities of notes payable are as follows: |
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All are classified as short term by the Company |
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During these periods, the Company was in default on two notes payable. The note holders have not taken any legal action against the Company as permitted by the agreements. Accrued interest on these notes totaled: |
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$ |
213,308 |
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$ |
184,376 |
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