Item 8.01 Other Events.
The Company is currently in default on approximately $148,000 of convertible promissory notes and accrued interest related thereto issued in the Company's private placement that occurred on December 29, 2006. The notes were due and payable on December 29, 2008. As a result of this default, interest on the notes, which was eight percent (8%) per annum, compounded quarterly, will begin to accrue at eighteen percent (18%) per annum until the notes are paid in full.

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