v2.4.1.9
Notes Payable
3 Months Ended
Mar. 31, 2015
Debt Disclosure [Abstract]  
Notes Payable

NOTE 11 – NOTES PAYABLE

 

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 March 31, 2015, the Company had principal outstanding in the promissory note of $22,500, and accrued interest of $1,849.

 

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 March 31, 2015, the Company had principal outstanding in the promissory note of $90,152, and accrued interest of $23,025.

 

On June 4, 2012, Bitzio, Inc. and ACT entered into a share purchase agreement wherein Bitzio acquired all of the issued and outstanding member’s 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 March 31, 2015 and recorded a gain on foreign currency transaction of $19,922. The amount due as of March 31, 2015 is $157,893.

 

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 March 31, 2015, the Company had principal outstanding in the promissory note of $ 5,222 and accrued interest of $2,273.