CONVERTIBLE NOTES PAYABLE |
9 Months Ended |
|---|---|
Sep. 30, 2017 | |
| Debt Disclosure [Abstract] | |
| CONVERTIBLE NOTES PAYABLE | NOTE 5 CONVERTIBLE NOTES PAYABLE
On March 24, 2017, the Company entered into a convertible advance with Crown Bridge Partners LLC. The agreement provides that the Company may borrow up to $750,000. Borrowings under the line bear interest at 8% upon maturity and include a 10% issue discount. The maturity date for each tranche funded shall be 12 months from the effective date of each tranche. Additionally, the note is convertible at the holder’s discretion into shares of the Company’s common stock based on a conversion formula using the lowest price of the common shares for the 20 trading prior to which the Notice of Conversion is received. As of September 30, 2017, the Company has drawn a $75,000 credit line against this facility.
On March 24, 2017, the Company entered into a convertible advance with Eagle Equities LLC. The advance, with a face value of $75,000, bears interest at 8% per annum and is payable on March 24, 2018. The note was issued at a 10% discount. The net proceeds received after issuance costs and fees was $63,750. In accordance with ASC 835-30-45, Interest, the Company records the fees, costs, and original issue discount as reduction of the carrying amount of the debt and amortizes the balances over the life of the debt instrument. Additionally, the note is convertible at the holder’s discretion into shares of the Company’s common stock based on a conversion formula using the lowest price of the common shares for the 20 trading prior to which the Notice of Conversion is received. The conversion formula created an embedded derivative conversion feature. The Company valued this conversion feature as of September 30, 2017 at $158,928 using the Black Scholes valuation model with the following assumptions: dividend yield of zero, 175-day term to maturity, risk free interest rate of 1.31% and annualized volatility of 63.25%. The value of the conversion feature was assigned to the derivative liability and created a debt discount to be amortized over the life of the convertible debt. At September 30, 2017 and 2016, the convertible note was recorded at $7,393 and $0, respectively. Accrued interest related to this advance was $3,123 and $0 at September 30, 2017 and 2016, respectively, and is included in accrued interest on the Balance Sheets.
On March 27, 2017, the Company entered into a convertible advance with Crown Bridge Partners, LLC. The advance, with a face value of $75,000, bears interest at 8% per annum and is payable on March 27, 2018. The note was issued at a 10% discount. The net proceeds received after issuance costs and fees was $63,750. In accordance with ASC 835-30-45, Interest, the Company records the fees, costs, and original issue discount as reduction of the carrying amount of the debt and amortizes the balances over the life of the debt instrument. Additionally, the note is convertible at the holder’s discretion into shares of the Company’s common stock based on a conversion formula using the lowest price of the common shares for the 20 trading prior to which the Notice of Conversion is received. The conversion formula created an embedded derivative conversion feature. The Company valued this conversion feature as of September 30, 2017 at $158,946 using the Black Scholes valuation model with the following assumptions: dividend yield of zero, 178-day term to maturity, risk free interest rate of 1.31% and annualized volatility of 63.25%. The value of the conversion feature was assigned to the derivative liability and created a debt discount to be amortized over the life of the convertible debt. At September 30, 2017 and 2016, the convertible note was recorded at $6,993 and $0, respectively. Accrued interest related to this advance was $3,074 and $0 at September 30, 2017 and 2016, respectively, and is included in accrued interest on the Balance Sheets.
On May 15, 2017, the Company entered into a convertible advance with Power Up Lending Group, LTD. The advance, with a face value of $38,000, bears interest at 12% per annum and is payable on May 15, 2018. The note was issued at a 7% discount. The net proceeds received after issuance costs and fees was $35,000. In accordance with ASC 835-30-45, Interest, the Company records the fees, costs, and original issue discount as reduction of the carrying amount of the debt and amortizes the balances over the life of the debt instrument. Additionally, the note is convertible at the holder’s discretion into shares of the Company’s common stock based on a conversion formula using the lowest price of the common shares for the 15 trading prior to which the Notice of Conversion is received. The conversion formula created an embedded derivative conversion feature. The Company valued this conversion feature as of September 30, 2017 at $159,321 using the Black Scholes valuation model with the following assumptions: dividend yield of zero, 242-day term to maturity, risk free interest rate of 1.31% and annualized volatility of 63.25%. The value of the conversion feature was assigned to the derivative liability and created a debt discount to be amortized over the life of the convertible debt. At September 30, 2017 and 2016, the convertible note was recorded at $2,152 and $0, respectively. Accrued interest related to this advance was $1,537 and $0 at September 30, 2017 and 2016, respectively, and is included in accrued interest on the Balance Sheets.
On May 15, 2017, the Company entered into a convertible advance with Kodiak Capital Group, LLC. The advance, with a face value of $37,500, bears interest at 8% per annum and is payable on May 15, 2018. The note was issued at a 10% discount. The net proceeds received after issuance costs and fees was $30,000. In accordance with ASC 835-30-45, Interest, the Company records the fees, costs, and original issue discount as reduction of the carrying amount of the debt and amortizes the balances over the life of the debt instrument. Additionally, the note is convertible at the holder’s discretion into shares of the Company’s common stock based on a conversion formula using the lowest price of the common shares for the 20 trading prior to which the Notice of Conversion is received. The conversion formula created an embedded derivative conversion feature. The Company valued this conversion feature as of September 30, 2017 at $159,221 using the Black Scholes valuation model with the following assumptions: dividend yield of zero, 227-day term to maturity, risk free interest rate of 1.31% and annualized volatility of 63.25%. The value of the conversion feature was assigned to the derivative liability and created a debt discount to be amortized over the life of the convertible debt. At September 30, 2017 and 2016, the convertible note was recorded at $1,872 and $0, respectively. Accrued interest related to this advance was $1,134 and $0 at September 30, 2017 and 2016, respectively, and is included in accrued interest on the Balance Sheets. |