Quarterly report pursuant to Section 13 or 15(d)

NOTES PAYABLE

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NOTES PAYABLE
9 Months Ended
Sep. 30, 2012
Debt Disclosure [Abstract]  
NOTES PAYABLE

NOTE 7 – NOTES PAYABLE

 

Notes payable consist of the following for the periods ended;       9/30/2012   12/31/2011
                     
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.           $0   $357,430
                     
    Debentures at 10%, unsecured, were to be convertible into            
       common shares at the option of the holder, all debentures            
      are currently in default.                       10,383   10,383
                     
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.       0   30,000
                     
    Convertible note payable, accrues with an interest at a Rate            
      of 6.0% per annum, two-year term. Currently in default.                    0   42,988
                     
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.           20,000   0
                     
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.           0   200,000
                                                       
Total Notes Payable             30,383   640,801
                     
Less Current Portion             30,383   640,801
                     
Long Term Notes Payable             $0   $0
                     
The aggregate principal maturities of notes payable are as follows:            
All are classified as short term by the Company. 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:       $15,910   $212,949