NOTE D - RELATED PARTY TRANSACTIONS
A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.
The Company has an unsecured non-interest bearing related party loan in the amount of $29,373 at December 31, 2012 and December 31, 2011. This advance is from, Jose Fernando Garcia, a shareholder with 20% of the Company’s outstanding common shares. The proceeds were used for daily business operations. The loan bears no interest and it is due on demand.
During the year ended December 31, 2012 and 2011, Jose Fernando Garcia advanced $13,293 and $7,511, respectively, to the Company by making payments for administrative expenses on behalf of the Company.