| NOTE 9 - NOTES PAYABLE - RELATED PARTIES |
NOTE 9 - NOTES PAYABLE - RELATED PARTIES
| Notes payable - related parties consist of the following: | |
| |
|
| | |
September 30,
2013 | |
December 31,
2012 |
| Note payable to a shareholder, secured by tangible and
intangible assets of the Company, interest at 16% per annum, principal and interest due April 1, 2000, past
due. Note is convertible into common stock of the Company at $0.10 per share. Note is in default. (2) | |
$ | 1,087,370 | | |
$ | 450,000 | |
| | |
| | | |
| | |
| Note payable to a related individual, interest at 8% per annum, past due. Note is in default. (1) | |
| 1,000,000 | | |
| 1,000,000 | |
| | |
| | | |
| | |
| Notes payable to related individuals, unsecured,
interest at 10%,due on demand. | |
| 43,500 | | |
| 43,500 | |
| Total notes payable - related parties | |
| 2,130,870 | | |
| 1,493,500 | |
| Less: current portion | |
| (2,130,870 | ) | |
| (1,493,500 | ) |
| Long-term notes payable - related parties | |
$ | — | | |
$ | — | |
Maturities of notes payable - related parties are as follows: | |
| | | |
| | |
Year Ending September 30, | |
| | | |
| Amount | |
| 2014 | |
| | | |
$ | 2,130,870 | |
Total | |
| | | |
$ | 2,130,870 | |
| | |
| | | |
| | |
Accrued interest on notes payable – related
parties for the nine months ended September 30, 2013 and year ended December 31, 2012 was $198,094 and $892,819, respectively.
During the three and nine months ended September 30, 2013, total interest expense to related party was $65,113 and $144,646, respectively.
| 1) | This note was issued for the acquisition of
AFI on January 28, 2012. As of September 30, 2013 and December 31, 2012, the Company had accrued interest on the note in the amount
of $133,918 and $74,082, respectively. |
| 2) | This note was originally issued for $450,000.
During the quarter ended September 30, 2013, the principle value of $450,000 along with accrued interest of $837,369 was converted
to two new notes for $1,087,370 and $200,000. |
| 3) | The Company issued common stock against the
new note of $200,000 from above. During the three months ended September 30, 2013, the Company issued 2,100,000 shares of common
stock in settlement of this note. |
|