NOTE 4 NOTES PAYABLE
On September 1, 2011, a third party purchased the $110,000 owed to the former President of the Company and this amount was transferred to a promissory note on that date. This loan is unsecured and payable on August 31, 2012 and is accruing 15% simple interest annually. As of August 31, 2012 the Company owes $110,000 in principal and $16,546 in interest on this note.
During the six months ended August 31, 2012, a third party loaned the Company $225,000. These loans are unsecured, bear interest at 15%, and payable a year from the signed note.