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NOTES PAYABLE - STOCKHOLDERS
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12 Months Ended |
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Sep. 30, 2012
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| NOTES PAYABLE - STOCKHOLDERS [Abstract] | |
| NOTES PAYABLE - STOCKHOLDERS |
NOTE 7 -NOTES PAYABLE - STOCKHOLDERS
The Company issued three notes payable to a stockholder totaling $115,000 during the year ended September 30, 2011 and an additional note for $45,000 on December 9, 2011. The notes call for interest payable at 10% quarterly and have a maturity date of December 31, 2012. In April 2012, the noteholder assigned $50,000 of principal due under the terms of these notes to four separate entities. Subsequently the four noteholders converted the $50,000 of promissory notes into 6,667 shares of the company's common stock. Total principal due at September 30, 2012 under the note is $110,000. On December 31, 2012 the notes were extended to December 31, 2013.
On June 26, 2012, the Company entered into a promissory note for $10,000 with an existing noteholder. The note bears a 10% interest rate, unsecured and is due on December 31, 2013.
The Company has other notes payable due to five stockholders totaling $166,142 as of September 30, 2012. These notes range in interest from 10% to 15% which is payable quarterly. All of these notes matured on December 31, 2012. As further discussed in Note 12, subsequent to year end $120,416 of these promissory notes plus accrued interest notes were converted to shares of Series C preferred stock and one note for $20,726 was extended to December 31, 2013.
Interest expense on notes payable - stockholders was $38,588 in 2012 and $22,752 in 2011.
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