Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 |
Notes | ' |
Related Party Transactions | ' |
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NOTE E – RELATED PARTY TRANSACTIONS |
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The Company currently utilizes office space on a rent-free basis from a shareholder, and shall do so until substantial revenue-producing operations commence. Management deemed the rent-free space to be of nominal value. |
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Shareholders and other related parties had loaned $13,787 to the Company as of December 31, 2004, which is convertible to common stock at a rate of $0.10 per share. The effect of conversion on the loss per share calculation would be anti-dilutive, as the Company incurred losses in each of the periods presented in the financial statements. |
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Shareholders and other related parties loaned $23,800 to the Company during 2005, which is convertible to common stock at a rate of $0.10 per share. The effect of conversion on the loss per share calculation would be anti-dilutive, as the Company incurred losses in each of the periods presented in the financial statements. Additionally, the Company recorded an interest expense of $23,800 for the conversion feature of the loans made during 2005. |
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Shareholders and other related parties loaned $17,100 to the Company during 2007, which is convertible to common stock at a rate of $0.10 per share. The effect of conversion on the loss per share calculation would be anti-dilutive, as the Company incurred losses in each of the periods presented in the financial statements. Additionally, the Company recorded an interest expense of $17,100 for the conversion feature of the loans made during 2007. |
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Shareholders and other related parties loaned $8,700 and $2,500 during 2008 and 2007, respectively, to the Company. These loans are demand notes and carry an interest rate of 24% per annum. |
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Shareholders and other related parties loaned $8,917 during 2009 to the Company. These loans are demand notes and carry an interest rate of 9-18% per annum. |
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Shareholders and other related parties loaned $5,000 during 2010 to the Company. These loans are demand notes and carry an interest rate of 10% per annum. |
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Shareholders and other related parties loaned $15,850 during 2011 to the Company. These loans are demand notes and carry an interest rate of 9% per annum. |
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Shareholders and other related parties loaned $14,500 during 2012 to the Company. This loan is a demand note and carries an interest rate of 9% per annum. |
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A shareholder loaned $12,950 during the nine months ended September 30, 2013 to the Company. This loan is a demand note and carries an interest rate of 9% per annum. |
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The Company recorded an interest expense of $3,239 and $2,919 on the related party notes listed above for the quarter ended September 30, 2013 and 2012, respectively. As of September 30, 2013, the Company owed $71,164 in accrued interest on these notes. |