| Debt Disclosure [Text Block] |
Note 7. Convertible Notes Payable
Convertible notes payable consisted of the following at September 30, 2015 and December 31, 2014:
| |
|
September 30, 2015
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|
|
December 31, 2014
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|
|
Convertible note dated April 1, 2010, bearing interest at 10% per annum, matured on March 31, 2013 and convertible into shares of common stock at $0.01 per share. This note is in default.
|
|
$ |
13,790 |
|
|
$ |
12,808 |
|
|
Convertible note dated May 15, 2010, bearing interest at 10% per annum, matured on March 31, 2013 and convertible into shares of common stock at $0.01 per share. This note is in default.
|
|
|
7,070 |
|
|
|
6,567 |
|
|
Convertible note dated October 31, 2012, bearing interest at 10% per annum, matures on April 30, 2014 and convertible into shares of common stock at $0.02 per share. This note is in default.
|
|
|
64 |
|
|
|
62 |
|
|
Convertible note dated April 1, 2013, bearing interest at 10% per annum, matures on March 31, 2015 and convertible into shares of common stock at $0.01 per share. This note is in default.
|
|
|
1,147 |
|
|
|
5,999 |
|
|
Convertible note dated June 30, 2013, bearing interest at 10% per annum, matures on June 30, 2015 and convertible into shares of common stock at $0.01 per share.
|
|
|
86,060 |
|
|
|
136,969 |
|
|
Convertible note dated September 30, 2013, bearing interest at 10% per annum, matures on September 30, 2015 and convertible into shares of common stock at $0.01 per share.
|
|
|
312,310 |
|
|
|
312,310 |
|
|
Convertible note dated June 30, 2014, bearing interest at 10% per annum, matures on June 30, 2016 and convertible into shares of common stock at $0.01 per share.
|
|
|
162,946 |
|
|
|
162,947 |
|
|
Convertible note dated December 31, 2014, bearing interest at 10% per annum, matures on December 31, 2016 and convertible into shares of common stock at $2.00 per share.
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|
|
202,160 |
|
|
|
202,160 |
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|
Convertible note dated March 31, 2015, bearing interest at 10% per annum, maturing on March 31, 2017, and convertible into shares of common stock at $1.10 per share.
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|
|
87,970 |
|
|
|
— |
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|
Convertible note dated June 30, 2015, bearing interest at 10% per annum, maturing on June 30, 2017, and convertible into shares of common stock at $0.15 per share.
|
|
|
81,813 |
|
|
|
— |
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|
Convertible note dated September 30, 2015, bearing interest at 10% per annum, maturing on September 30, 2018, and convertible into shares of common stock at $0.06 per share.
|
|
|
326,402 |
|
|
|
— |
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|
Total convertible notes payable
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|
$ |
1,281,732 |
|
|
$ |
839,822 |
|
| |
|
|
|
|
|
|
|
|
|
Less: current portion of convertible notes payable
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|
|
(583,387 |
) |
|
|
(474,716 |
) |
|
Less: discount on noncurrent convertible notes payable
|
|
|
(673,909 |
) |
|
|
(355,753 |
) |
|
Noncurrent convertible notes payable, net of discount
|
|
$ |
24,436 |
|
|
$ |
9,353 |
|
| |
|
|
|
|
|
|
|
|
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Current portion of convertible notes payable
|
|
|
583,387 |
|
|
|
474,716 |
|
|
Less: discount on current portion of convertible notes payable
|
|
|
(130,407 |
) |
|
|
(280,892 |
) |
|
Current portion of convertible notes payable, net of discount
|
|
$ |
452,980 |
|
|
$ |
193,824 |
|
All principal along with accrued interest is payable on the maturity date. The notes are convertible into common stock at the option of the holder. The holder of the notes cannot convert the notes into shares of common stock if that conversion would result in the holder owning more than 4.9% of the outstanding stock of the Company.
Advances Refinanced into Convertible Promissory Notes
During the nine months ended September 30, 2015, the Company has signed Convertible Promissory Notes that refinance non-interest bearing advances into convertible notes payable. The Convertible Promissory Notes bear interest at 10% per annum and are payable along with accrued interest. The Convertible Promissory Note and unpaid accrued interest are convertible into common stock at the option of the holder.
|
Date Issued
|
|
Maturity Date
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|
Interest
Rate
|
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|
Conversion
Rate
|
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|
Amount
of Note
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|
Beneficial
Conversion Feature
|
|
|
March 31, 2015
|
|
March 31, 2017
|
|
|
10 |
% |
|
$ |
1.10 |
|
|
$ |
87,970 |
|
|
$ |
87,970 |
|
|
June 30, 2015
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|
June 30, 2017
|
|
|
10 |
% |
|
|
0.15 |
|
|
|
81,813 |
|
|
|
81,813 |
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|
September 30, 2015
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|
September 30, 2018
|
|
|
10 |
% |
|
|
0.06 |
|
|
|
326,402 |
|
|
|
326,402 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
$ |
496,185 |
|
|
$ |
496,185 |
|
Conversions to Common Stock
During nine months ended September 30, 2015, the holders of the Convertible Note Payable dated April 1, 2013 elected to convert principal and accrued interest in the amounts show below into share of common stock at a rate of $0.01 per share. On the conversion date, the unamortized discount related to the principal amount converted was immediately amortized to interest expense. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement that provided for conversion.
| Date |
|
Amount
Converted
|
|
|
Number of
Shares Issued
|
|
|
Discount
Amortized
|
|
|
January 12, 2015
|
|
$ |
300 |
|
|
|
30,000 |
|
|
$ |
— |
|
|
January 14, 2015
|
|
|
300 |
|
|
|
30,000 |
|
|
|
— |
|
|
January 27, 2015
|
|
|
320 |
|
|
|
32,000 |
|
|
|
— |
|
|
February 6, 2015
|
|
|
350 |
|
|
|
35,000 |
|
|
|
— |
|
|
February 16, 2015
|
|
|
350 |
|
|
|
35,000 |
|
|
|
— |
|
|
February 16, 2015
|
|
|
350 |
|
|
|
35,000 |
|
|
|
— |
|
|
February 16, 2015
|
|
|
350 |
|
|
|
35,000 |
|
|
|
— |
|
|
February 26, 2015
|
|
|
400 |
|
|
|
40,000 |
|
|
|
— |
|
|
February 26, 2015
|
|
|
400 |
|
|
|
40,000 |
|
|
|
— |
|
|
March 11, 2015
|
|
|
1,900 |
|
|
|
190,000 |
|
|
|
— |
|
|
Total
|
|
$ |
5,020 |
|
|
|
502,000 |
|
|
$ |
— |
|
During nine months ended September 30, 2015, the holders of the Convertible Note Payable dated June 30, 2013 elected to convert principal and accrued interest in the amounts show below into share of common stock at a rate of $0.01 per share. On the conversion date, the unamortized discount related to the principal amount converted was immediately amortized to interest expense. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement that provided for conversion.
| Date |
|
Amount
Converted
|
|
|
Number of
Shares Issued
|
|
|
Discount
Amortized
|
|
|
March 12, 2015
|
|
$ |
1,900 |
|
|
|
190,000 |
|
|
$ |
— |
|
|
April 1, 2015
|
|
|
2,000 |
|
|
|
200,000 |
|
|
|
— |
|
|
April 13, 2015
|
|
|
2,000 |
|
|
|
200,000 |
|
|
|
— |
|
|
April 28, 2015
|
|
|
2,300 |
|
|
|
230,000 |
|
|
|
— |
|
|
May 5, 2015
|
|
|
2,300 |
|
|
|
230,000 |
|
|
|
— |
|
|
May 22, 2015
|
|
|
2,500 |
|
|
|
250,000 |
|
|
|
— |
|
|
June 2, 2015
|
|
|
2,500 |
|
|
|
250,000 |
|
|
|
— |
|
|
June 16, 2015
|
|
|
2,800 |
|
|
|
280,000 |
|
|
|
— |
|
|
June 23, 2015
|
|
|
2,900 |
|
|
|
290,000 |
|
|
|
— |
|
|
June 25, 2015
|
|
|
1,800 |
|
|
|
180,000 |
|
|
|
— |
|
|
June 26, 2015
|
|
|
1,400 |
|
|
|
140,000 |
|
|
|
— |
|
|
June 29, 2015
|
|
|
1,000 |
|
|
|
100,000 |
|
|
|
— |
|
|
June 30, 2015
|
|
|
2,800 |
|
|
|
280,000 |
|
|
|
— |
|
|
July 8, 2015
|
|
|
2,270 |
|
|
|
227,000 |
|
|
|
— |
|
|
July 15, 2015
|
|
|
2,250 |
|
|
|
225,000 |
|
|
|
— |
|
|
July 16, 2015
|
|
|
1,750 |
|
|
|
175,000 |
|
|
|
— |
|
|
July 17, 2015
|
|
|
3,750 |
|
|
|
375,000 |
|
|
|
— |
|
|
July 17, 2015
|
|
|
3,750 |
|
|
|
375,000 |
|
|
|
— |
|
|
July 21, 2015
|
|
|
2,350 |
|
|
|
235,000 |
|
|
|
— |
|
|
July 21, 2015
|
|
|
1,000 |
|
|
|
100,000 |
|
|
|
— |
|
|
July 31, 2015
|
|
|
3,100 |
|
|
|
310,000 |
|
|
|
— |
|
|
August 5, 2015
|
|
|
1,370 |
|
|
|
137,000 |
|
|
|
— |
|
|
August 13, 2015
|
|
|
3,280 |
|
|
|
328,000 |
|
|
|
— |
|
|
August 27, 2015
|
|
|
3,330 |
|
|
|
333,000 |
|
|
|
— |
|
|
September 11, 2015
|
|
|
4,850 |
|
|
|
485,000 |
|
|
|
— |
|
|
September 11, 2015
|
|
|
3,300 |
|
|
|
330,000 |
|
|
|
— |
|
|
September 11, 2015
|
|
|
1,500 |
|
|
|
150,000 |
|
|
|
— |
|
|
September 11, 2015
|
|
|
1,500 |
|
|
|
150,000 |
|
|
|
— |
|
|
September 24, 2015
|
|
|
2,650 |
|
|
|
265,000 |
|
|
|
— |
|
|
September 29, 2015
|
|
|
1,400 |
|
|
|
140,000 |
|
|
|
— |
|
|
Total
|
|
$ |
71,600 |
|
|
|
7,160,000 |
|
|
$ |
— |
|
|