At September 30, 2011 and December 31, 2010, the Company owed $45,662
and $21,665, respectively, to related parties for expenses of the Company. An affiliate of Sanford Schwartz was owed $40,173 and
$16,177 at September 30, 2011 and December 31, 2010 respectively, and affiliates of Nick T. Boosalis were owed $5,488 at September
30, 2011 and December 31, 2010. The advances are loans that are uncollateralized, bear no interest and are due on demand.
The Company uses the offices of its President for its mailing address
and minimal office facility needs for no consideration. No provision for these costs has been provided since it has been determined
that they are minimal.