In July 2012, the company received a loan of $10,377 from a stockholder accruing interest at 10% and repayable in September 2012. These terms are currently being renegotiated. The Company has recognized accrued interest expense of $193 to September 30, 2012. The balance including principle and interest at September 30, 2012 was $10,570.

In September 2012, the company received a loan of $6,226 from a stockholder accruing interest at 10% and repayable in November 2012. The Company has recognized accrued interest expense of $7 to September 30, 2012. The balance including principle and interest at September 30, 2012 was $6,233.