Note payable consists of the following:

Note payable, First Line Capital, LLC (“First Line”), bearing interest at 8% per annum and due March 31, 2013. The note allows the Company to borrow any amount in increments of up to $50,000. As of March 31, 2013, the note is in default and interest will accrue at the default rate of 15% per annum.

Included in accounts payable is interest owed to First Line amounting to $2,348 and $142 at April 30, 2013 and July 31, 2012, respectively.