NOTE 6. RELATED PARTY PAYABLE
The Chairman and CEO of the Company controls Aerospace, which has licensed the
intellectual property to the Company as described in note 5. Aerospace has
provided employees and product development services to the Company. Since
inception (March 20, 2002), Aerospace has provided such services totaling
approximately $2.9 million for which the Company owes Aerospace $308,477 as of
September 30, 2003. As of January 1, 2003, Aerospace substantially discontinued
all of its operations and the Company hired 25 individuals previously employed
through Aerospace. Aerospace continues to provide certain supplies and services
to the Company.
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 matures on December
31, 2003. The Company owes Aerospace $92,072 as of September 30, 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 as 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 October 31, 2003. USDR
has extended this loan through April 30, 2004. The Company owes USDR $105,357 as
of September 30, 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 matured on October 31, 2003. The shareholder has extended these loans
through 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%.
$10,000 matured on October 31, 2003 and has been extended to April 30, 2004, and
$25,000 matures on December 1, 2003. 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
$56,829 as of September 30, 2003 under this loan agreement.
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