NOTE 7. SHAREHOLDER LOANS PAYABLE
On April 18, 2003, the Company entered into a loan agreement with Aerospace for
amounts up to $100,000. The loan bears interest at 10% and matured on December
31, 2003. Aerospace has extended this loan through June 30, 2004. The Company
owes Aerospace $94,342, including interest, as of December 31, 2003 under this
loan agreement.
The Chairman and CEO of the Company has continued to provide cash to support the
Company's operations until such time the Company generates cash through
operations or financing is obtained from the issuance of debt or equity. The
Chairman and CEO of the Company also controls USDR(NV), Inc. (USDR) and on June
6, 2003 the Company entered into a loan agreement with USDR for amounts up to
$125,000. The loan bears interest at 10% and matures on April 30, 2004. The
Company owes USDR $109,205, including interest, as of December 31, 2003 under
this loan agreement.
On April 11, 2003 and April 18, 2003, the Company entered into two loans
totaling $16,000 from an existing shareholder. The loans bear interest at 10%
and mature on April 30, 2004.
On April 29, 2003, April 30, 2003 and May 9, 2003, the Company entered into
three loans totaling $35,000 from Directors. The loans bear interest at 10% and
mature on June 30, 2004. On August 7, 2003 the Company entered into a loan
agreement with a Director for amounts up to $150,000. The loan bears interest at
10% and matures on June 30, 2004. The Company owes the Director $150,715,
including interest, as of December 31, 2003 under this loan agreement. On
October 3, 2003 the Company entered into a loan agreement with a Director for
amounts up to $100,000. The loan bears interest at 10% and matures on June 30,
2004. The Company owes the Director $6,000 as of December 31, 2003 under this
agreement. |
