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Notes Payable
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12 Months Ended |
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Dec. 31, 2014
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| Debt Disclosure [Abstract] | |
| Notes Payable |
NOTE 12 NOTES PAYABLE
On November 18, 2013, the Company entered into a Distribution Agreement with E-motion Apparel, Inc. The agreement provides that the Company will issue a promissory note to E-motion in an amount equal to 100% of the License Fee of $300,000. The Promissory Note shall have a maturity date of December 31, 2016 and be payable in 4 installments of $75,000 on December 31, 2014, December 31, 2015, December 31, 2105 and December 31, 2016. The Promissory Note shall bear no interest and be unsecured. As of July 18, 2014, the note was cancelled and replaced with the merger agreement.
From February to April 2014, the Company entered into a marketing agreement with Echo Factory, Inc. The agreement provides that the Company will issue three promissory notes to Echo Factory in an amount equal to $7,500 for service provided on February 14, March 14 and April 14, 2014. The Promissory Note shall have 12 month term and bear 8% interest and be unsecured. As of December 31, 2014, the Company had principal outstanding in the promissory note of $22,500, and accrued interest of $1,405.
During 2012, the Company borrowed $55,000 through an unsecured promissory note bearing interest at 10% with a maturity date of March 10, 2014. During 2013, the Company borrowed additional $43,214, and converted $8,062 into 8,062,000 shares of common stock. As of December 31, 2014, the Company had principal outstanding in the promissory note of $90,152, and accrued interest of $20,794.
On June 4, 2012, Bitzio, Inc. and ACT entered into a share purchase agreement wherein Bitzio acquired all of the issued and outstanding members equity in exchange for 3,300,000 Series A Convertible Redeemable Preferred shares of the Company. On February 22, 2013, the two parties agreed to unwind the transaction by Bitzio returning the ACT shares acquired and ACT returning the Bitzio preferred share consideration for cancellation. In addition, Bitzio agreed to pay an aggregate of 147,000 Euros ($194,447 USD) to ACT. The Company re-measured the amount due in U.S. dollars as of December 31, 2014 and recorded a gain on foreign currency transaction of $24,476. The amount due as of December 31, 2014 is $177,885.
On January 29, 2014 the Company sold a Promissory Note to The Victor Vinco Family Trust (the Trust). The purchase price was $70,000. The principal amount of the Note is $94,500, which is payable in installments of $18,900 on the 15th day of each month during the term of the Note. The Note does not bear interest, except in the event of a default, at which time interest shall accrue at 18% per annum. As of December 31, 2014, the note and accrued interest was fully repaid.
On July 1, 2013, Lexi-Luu borrowed $10,000 through an unsecured promissory note bearing interest $1,076 maturity date of January 1, 2014. This note is currently at default, and bearing 45% interest. As of December 31, 2014, the Company had principal outstanding in the promissory note of $5222, and accrued interest of $1822. |