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CONVERTIBLE NOTE PAYABLE - RELATED PARTIES
 12 Months Ended
Dec. 31, 2016
Debt Disclosure [Abstract]  
CONVERTIBLE NOTE PAYABLE - RELATED PARTIES
9. CONVERTIBLE NOTE PAYABLE - RELATED PARTIES

 

Convertible note payable   December 31,     December 31,  
    2016     2015  
Convertible note payable, related party   $ 0     $ 0  

 

In September 2009, the Company entered a convertible note payable with a related party, a majority shareholder which carries interest at six percent per annum. The outstanding balance is convertible into the Company’s common stock at a conversion price of $0.30 per share. The Company is obligated to file a registration statement upon written notice from the creditor and such registration statement must be effective within 180 days of the date of notice. If after the 180 days the Company has not complied with the agreement it shall pay $65,000 per month in penalty, until the registration statement is effective.

  

The note matures in December 2016, at which time the principal amount is due. In April 2015, the note holder converted the outstanding portion of $1,500,000, into shares of common stock in accordance with the conversion terms of the agreement. The creditor also terminated all registration rights and waived any penalties that might have been incurred in connection therewith. The outstanding balance on the loan as of December 31, 2016 and December 31, 2015 was $0 and $0, respectively.