Notes Payable	3 Months Ended
Mar. 31, 2013
Notes Payable
NOTE 5 - Notes Payable	On July 25, 2011, repayment for $25,000 was made for the $50,000 note due to Landolt, a company owned by a director of the Company. At which time the note was assigned to MeM Mining, Inc. MeM is controlled by, Mendel Mochkin, a director of the company. As of December 31, 2012, the principle balance due was $25,000, is unsecured and was due January 2013 with accrued interest at 5%. As of March 31, 2013, the Company was unable to repay the loan on the maturity date, and the principal balance of $25,000 and accrued interest of $3,459 are in default. The note does not include any additional fees or penalties due to the loan being in default. On March 28, 2012 the Company received $30,000 from First Line Capital, in exchange for an unsecured note bearing interest at 8%. As of December 31, 2012, the principal due was $30,000, is unsecured and was due in full plus accrued interest on March 28, 2013. As of March 31, 2013, the Company was unable to repay the loan on the maturity date, and the principal balance of $30,000 and accrued interest of $2,420 are in default. The loan stipulates an increase to a 15% interest rate until the loan is repaid. During 2012, the Company received a total of $50,020 from Leonard Sternheim, CEO of the Company, as an unsecured non-interest bearing loan. As of March 31, 2013 and December 31, 2012, the principal due was $50,020, is unsecured and is due on demand. The Company recorded $986 and $393 of imputed interest related to Mr. Sternheim’s loan payable as in-kind contribution at March 31, 2013 and December 31, 2012, respectively.

Notes Payable

3 Months Ended

Mar. 31, 2013

On July 25, 2011, repayment for $25,000 was made for the $50,000 note due to Landolt, a company owned by a director of the Company. At which time the note was assigned to MeM Mining, Inc. MeM is controlled by, Mendel Mochkin, a director of the company. As of December 31, 2012, the principle balance due was $25,000, is unsecured and was due January 2013 with accrued interest at 5%. As of March 31, 2013, the Company was unable to repay the loan on the maturity date, and the principal balance of $25,000 and accrued interest of $3,459 are in default. The note does not include any additional fees or penalties due to the loan being in default.

On March 28, 2012 the Company received $30,000 from First Line Capital, in exchange for an unsecured note bearing interest at 8%. As of December 31, 2012, the principal due was $30,000, is unsecured and was due in full plus accrued interest on March 28, 2013. As of March 31, 2013, the Company was unable to repay the loan on the maturity date, and the principal balance of $30,000 and accrued interest of $2,420 are in default. The loan stipulates an increase to a 15% interest rate until the loan is repaid.

During 2012, the Company received a total of $50,020 from Leonard Sternheim, CEO of the Company, as an unsecured non-interest bearing loan. As of March 31, 2013 and December 31, 2012, the principal due was $50,020, is unsecured and is due on demand. The Company recorded $986 and $393 of imputed interest related to Mr. Sternheim’s loan payable as in-kind contribution at March 31, 2013 and December 31, 2012, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details

MUSTANG ALLIANCES, INC. 10-Q