Balance Sheet Information | 6 Months Ended |
Jun. 30, 2013 |
Balance Sheet Information | ' |
Note 3 - Balance Sheet Information | ' |
The Company had cash of $0 at June 30, 2013 and December 31, 2012. |
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Accounts Receivable - When products are shipped to our large customers, the invoice amounts are normally factored with our factoring agent, Paragon Financial Group, Inc. We are immediately advanced 80% of the amount of factored invoices with the remaining 20% paid to us when collected by our agent. |
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Property and equipment are stated at cost, net of accumulated depreciation. Expenditures for maintenance and repairs are expensed as incurred; additions, renewals and betterments are capitalized. Depreciation of property and equipment is provided using the straight-line method with estimated lives ranging from 3 to 5 years. Property and equipment is as follows as of June 30, 2013 and December 31, 2012: |
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| | 2013 | | | 2012 | |
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Furniture and fixtures | | $ | 147 | | | $ | 147 | |
Office equipment | | | 165 | | | | 165 | |
Computer software | | | 2,675 | | | | 2,675 | |
Motor vehicle | | | 10,000 | | | | 10,000 | |
| | | 12,987 | | | | 12,987 | |
Accumulated depreciation | | | 10,987 | | | | 9,987 | |
Net property and equipment | | $ | 2,000 | | | $ | 3,000 | |
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Depreciation expense for the three months ended June 30, 2013 and 2012 was $500. The use of our property and equipment determines if the depreciation is recorded as cost of goods sold or as general and administrative expenses. |
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Notes Payable - The Company had notes payable totaling $150,593 at June 30, 2013. |
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$20,000 Note: On August 15, 2011, an individual loaned the Company $20,000 in exchange for a Promissory Note bearing interest at 5% for a term of six months. As a result of the recapitalization and presentation of the Share Exchange Agreement on the Company's financial statements, this note is presented at December 31, 2011. In lieu of paying interest on the note, restricted shares of the Company's common stock will be issued to the note-holder. The Note was paid in full in April 2012. |
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$4,716 Note: On November 22, 2011, an individual loaned the Company $6,000 in exchange for a Promissory Note bearing interest at 10% for a term of six months. The accrued interest payable balance on this note was $714 at June 30, 2013 and is included in the Accrued Interest section of the Company's balance sheet. |
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$50,000 Note: On December 5, 2011, an individual loaned the Company $50,000 in exchange for a Promissory Note bearing interest at 12% for a term of one month, renewable each month if agreed upon by the parties. To date, the parties have agreed to renew and extend the note each month. The accrued interest payable balance on this note was $9,083 at June 30, 2013 and is included in the Accrued Interest section of the Company's balance sheet. |
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$42,500 Note: On February 2, 2012, an entity loaned the Company $42,500 in exchange for a Promissory Note bearing interest at 8% for a term of nine months, convertible after nine months at 50% of the market price of our shares. In May 2012, the Company repaid 28,000 of this note together with accrued interest thereon. As a result, the balance of the note amounted to $14,500. The accrued interest payable balance on this note was $1,273 at June 30, 2013 and is included in the Accrued Interest section of the Company's balance sheet. |
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On April 11, 2012, the Company borrowed funds from Asher Enterprises in the amount of $32,500 bearing interest at the rate of 8% per year. The accrued interest payable balance on this note was $3,207 at June 30, 2013 and is included in the Accrued Interest section of the Company's balance sheet. |
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On June 1 2012, the Company’s director converted accrued expense and / or loaned the Company a total of $40,000. The accrued interest payable balance on this note was $3,200 at June 30, 2013 and is included in the Accrued Interest section of the Company's balance sheet. |
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On June 1, 2012, the Company borrowed $8,877 from Sunny Boyd Williams LLC. The accrued interest payable balance on this note was $728 at June 30, 2013 and is included in the Accrued Interest section of the Company's balance sheet. |
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All of the above notes are now due on demand and are uncollateralized. |
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As a result of the above, the balance of the notes payable is $150,593 and the accrued interest thereon is $18,205. |
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Other Current Liabilities - The Company had other current liabilities consisting of the following at June 30, 2013 and December 31, 2012: |
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| | 2013 | | | 2012 | |
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Accrued Payroll | | $ | 96,659 | | | $ | 70,000 | |
Accrued interest payable | | | 18,205 | | | | 12,204 | |
Total Accrued expense | | $ | 110,864 | | | $ | 82,204 | |