On August 16 through August 17, 2012, certain of the directors, executive officers and greater than 10% stockholders of Circle Entertainment Inc. made unsecured demand loans to the company totaling $400,000, bearing interest at the rate of 6% per annum. The company intends to use the proceeds from the loans to fund working capital requirements and for general corporate purposes. Because certain of the directors, executive officers and greater than 10% stockholders of the company made the loans, a majority of the company's independent directors approved the transaction.