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PROMISSORY NOTES RECEIVABLE
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3 Months Ended |
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Jun. 30, 2011
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| Notes to Financial Statements | |
| PROMISSORY NOTES RECEIVABLE |
NOTE 4 - PROMISSORY NOTES RECEIVABLE
On December 17, 2010 the Company entered into agreement with Montclair Technology, LLC (the Borrower) and Michael Williams (the Guarantor) to loan funds to the Borrower in an amount of up to $200,000. The Guarantor owns a patent and has proprietary know-how to develop oil refining and regeneration plants and Borrower desires to grant the Company a license to use and employ the technology. As further inducement for the Company to loan funds to the Borrower, Guarantor has agreed to guarantee Borrowers obligations under any promissory note made by Borrower pursuant to this agreement.
As a result at December 17, 2010, Borrower issued the Company a Promissory note for $50,000 with interest rate of 18% per annum. The outstanding principal sum and all accrued and unpaid interest or other sums under this Promissory note shall be payable one year after the December 17, 2010. Borrower may prepay any or all accrued and unpaid interest and unpaid principal at any time without penalty. After the first transfer in December 2010, the Company made additional transfers on January 19, 2011, February 24, 2011, March 31, 2011 and May 20, 2011 in the amounts of $50,000, $25,000, $25,000 and $30,000, respectively.
As a result the Company treated the loan as a Promissory note receivable in its financial statements. At June 30, 2011 Promissory notes receivable amounted to $192,090, with $180,000 principal amount and $12,090 representing the amount of interest accrued. |