CONVERTIBLE NOTES PAYABLE	9 Months Ended
Sep. 30, 2012
Notes to Financial Statements
CONVERTIBLE NOTES PAYABLE	$150,000 Convertible Note On July 27, 2012 the Company borrowed $150,000 from an unrelated third party entity in the form of a convertible note, The note bears interest at a rate of 10.0 percent per annum, with principal and interest due in full on July 27, 2015. Accrued interest payable on the note totaled $2,671 at September 30, 2012. The principal balance of the note along with accrued interest is convertible at any time, at the option of the note holder, into the Company's common stock at a price of 20 percent below the market price on the date of conversion. The market price is defined as the average of the lowest three trading prices for the common stock during the five-day period on the most recent complete trading day prior to the conversion date. Pursuant to this conversion feature, the Company recognized a discount on convertible debt in the amount of $37,500 on the note date. As of September 30, 2012 the Company had amortized $3,288 of the debt discount to interest expense, leaving $34,212 in unamortized debt discount at September 30, 2012.

CONVERTIBLE NOTES PAYABLE

9 Months Ended

Sep. 30, 2012

$150,000 Convertible Note

On July 27, 2012 the Company borrowed $150,000 from an unrelated third party entity in the form of a convertible note, The note bears interest at a rate of 10.0 percent per annum, with principal and interest due in full on July 27, 2015. Accrued interest payable on the note totaled $2,671 at September 30, 2012.

The principal balance of the note along with accrued interest is convertible at any time, at the option of the note holder, into the Company's common stock at a price of 20 percent below the market price on the date of conversion. The market price is defined as the average of the lowest three trading prices for the common stock during the five-day period on the most recent complete trading day prior to the conversion date.

Pursuant to this conversion feature, the Company recognized a discount on convertible debt in the amount of $37,500 on the note date. As of September 30, 2012 the Company had amortized $3,288 of the debt discount to interest expense, leaving $34,212 in unamortized debt discount at September 30, 2012.

GroveWare Technologies Ltd. 10-Q