Notes Payable

3 Months Ended

Mar. 31, 2012

Note 6. Notes Payable

On August 1, 2009, we amended and restated the terms of a note payable with InteMedica, LLC. This note bears interest at 12% per annum, with $8,000 due monthly until paid in full. As of March 31, 2012, the note payable was in default. As of March 31, 2012, the note payable balance was $46,942 and accrued interest totaled $7,792.

On January 28, 2011, we received $50,000 in exchange for a promissory note. The 18-month note matures on June 28, 2012, and bears interest at 10% per annum. As part of the agreement, we issued the lender 25,000 shares of common stock (see Note 11). We plan to make interest-only payments until the maturity date, at which time the full principal amount is payable.

Notes payable consisted of the following as of March 31, 2012, and December 31, 2011:

	2012			2011

Unsecured note payable to InteMedica, LLC, interest at 12%, monthly payments of $8,000, in default	$	46,942		$	46,942

Unsecured note payable to shareholder, interest at 10%, interest payments due monthly, principal due at June 28, 2012		50,000			50,000

Total notes payable		96,942			96,942

Less current portion		(96,942	)		(96,942	)

Long-term portion	$	-		$	-

Zyto Corp 10-Q