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Annual report pursuant to section 13 and 15(d)

Convertible Notes Payable

v2.4.0.6
Convertible Notes Payable
 12 Months Ended
Feb. 29, 2012
Notes to Financial Statements  
Convertible Notes Payable

 

Note 3. Convertible Notes Payable

 

On September 26, 2011, the Company issued a convertible note with a face value totaling $10,000, bearing interest of 10% per annum, maturing December 26, 2011. The holder shall have the right, at its option and simultaneously with the first closing thereof, to convert all or a portion of the principal amount of this note into shares of the Company’s common stock at the conversion price of the next equity offering of the Company. The convertible note was past due as of December 26, 2011 and, accordingly, the Company was in default (See Note 7).

 

On December 12, 2011, the Company issued a convertible note with a face value totaling $10,000, bearing interest of 10% per annum, maturing February 12, 2012. The holder shall have the right, at its option and simultaneously with the first closing thereof, to convert all or a portion of the principal amount of this note into shares of the Company’s common stock at the conversion price of the next equity offering of the Company. The convertible note was past due as of February 12, 2012 and, accordingly, the Company was in default (See Note 7).

 

Notes payable consisted of the following at February 29, 2012:

 

Notes payable    
     
    February 29, 2012
Note payable - originating September 26, 2011; no monthly payments required; bearing interest at 10%; in default since maturity at December 26, 2011 [A]   $ 10,000  
         
Note payable - originating December 12, 2011; no monthly payments required; bearing interest at 10%; in default since maturity at February 12, 2012 [A]     10,000  
Total     20,000  
Less: Current maturities     (20,000 )
Amount due after one year   $ —    
         
[A] - in default as of February 29, 2012.