Note 2: Related Party Transactions
Promissory Notes: During the years ended December 31, 2011 and 2010, advances of $54,500
and $6,656 respectively were made by management and other related parties. During 2011, all outstanding obligations of the
Company were settled and brought current, specifically, Promissory Notes totaling $54,500, together with all interest accrued,
were converted into 100,000 shares of common stock.
Cancellation of Shares: Effective April 27, 2011, a shareholder of the
Company agreed to cancel 4,650,000 (310,000 post-split) shares of the Company for no consideration.
Forgiveness of Debt: Effective
September 30, 2011, a stockholder of the Company agreed to forgive the outstanding balance owed him of approximately $22,500
for legal fees with the intent that the Company will pay his legal fees going forward on a regular basis.
Sale of Shares: In
October of 2011, the sole officer and director of the Company acquired 2,500,000 shares for 5,000 cash, used to pay operating
expenses, and as payment for services rendered.
Conversion of Preferred Shares: In 2011, the remaining outstanding preferred
shares were converted into 300,000 shares of common stock.