7. PROMISSORY NOTES
The following table summarizes outstanding promissory notes at December 31, 2008:
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Principal
Due at
December 31,
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Less Unamortized
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Net at December 31,
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Long-Term
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2008
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Discount
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2008
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Portion
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Description and Rate
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Maturity
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$
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$
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$
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$
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Collateral
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Conversion
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18% Secured Promissory Note
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Interest monthly, principal at June 23, 2009
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300,000 |
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(2,868 |
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297,132 |
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-
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Security interest in substantially
all assets
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Not applicable
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12% Promissory
Note
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Principal and interest due April 3, 2009
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40,000 |
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(1,173 |
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38,827 |
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-
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None
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Not applicable
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7.5% Convertible
Term Note
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Principal and interest in monthly installments $50,000 per month through maturity in November 2009
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528,208 |
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(11,241 |
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516,967 |
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-
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None
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At $.30 per share at holder option and callable for conversion at market of $0.40 per common share
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868,208 |
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(15,282 |
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852,926 |
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-
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