Note 4: Related Party Transactions

Commencing in 2006, the Company’s sole officer made payment of general and administrative expenses incurred by the Company and in 2007 entered into an unsecured line of credit note. This note bears interest at a rate of 18% per annum and has been extended on several occasions. Commencing in 2008, an affiliate of the Company’s sole officer made similar payment of general and administrative expenses incurred by the Company at a rate of 18% per annum. Furthermore, certain general and administrative expenses related to the Company maintaining an office and filing its reports with the Securities and Exchange Commission have been accrued and are payable to the Company’s sole officer and affiliate.  Collectively, these amounts total $78,916 and $69,922 at June 30, 2012 and December 31, 2011, respectively. Accrued interest included in these amounts is $24,910 and $21,548 at June 30, 2012 and December 31, 2011, respectively.  During the year ended December 31, 2010, $25,000 in principal was converted into common stock.