Convertible Notes Payable, Including Related Party
 9 Months Ended
Sep. 30, 2016
Convertible Notes Payable, Including Related Party [Abstract]  
CONVERTIBLE NOTES PAYABLE, INCLUDING RELATED PARTY

NOTE 3 – CONVERTIBLE NOTES PAYABLE, INCLUDING RELATED PARTY

 

Convertible notes payable at September 30, 2016 and December 31, 2015 consist of the following:

 

  September 30,  December 31, 
  2016  2015 
Convertible notes to stockholder due on various dates through August 24, 2016; interest at 4%; convertible in shares of common stock at 90% of the Company’s stock price at date of conversion. ($58,599 in default at September 30, 2016) $59,599  $51,212 
Convertible note to investor due on February 24, 2018; interest free for 90 days then at 12% thereafter; included an original issue discount of $2,778; convertible in shares of common stock at 50% of the Company’s stock price at date of conversion.  27,778   -- 

 

  September 30,  December 31, 
  2016  2015 
Convertible note to investor due on September 22, 2017; interest at 10%; included an original issue discount of $7,245; convertible in shares of common stock at 50% of the Company’s stock price at date of conversion.  56,750   -- 
   144,127   51,212 
Less debt discount  (74,995)  (19,887)
Convertible notes, net of discount $69,132  $31,325 
         
Convertible notes payable - related party $59,599  $51,212 
Less debt discount  (33)  (19,887)
Convertible notes - related party, net of discount $59,566  $31,325 
         
Convertible notes payable - unrelated parties $84,528  $-- 
Less debt discount  (74,962)  -- 
Convertible notes - unrelated parties, net of discount $9,566  $-- 

 

During the nine months ended September 30, 2016, the Company issued convertible notes in the aggregate principal amount of $208,766. Due to the variable conversion price associated with these convertible notes, the Company has determined that the conversion feature is considered derivative liabilities. The embedded conversion feature was initially calculated to be $339,273, which is recorded as a derivative liability as of the date of issuance. In addition, for one the convertible notes the Company also issued 26 warrants with an exercise price of $950 subject to change if securities are issued at a price per share below the exercise price. This provision results in the warrant being a derivative liability. The derivative liability was first recorded as a debt discount up to the face amount of the convertible notes of $208,766, with the remainder being charge as a financing cost during the period. The debt discount is being amortized over the terms of the convertible notes. The Company recognized interest expense of $153,658 during the nine months ended September 30, 2016 related to the amortization of the debt discount.