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Notes Payable
 9 Months Ended
Sep. 30, 2015
Notes Payable [Abstract]  
Notes Payable
4.Notes Payable

 

Notes payable are due to officers, directors, and shareholders and a commercial lender and are summarized as follows:

 

   Officers, directors, and shareholders  Commercial lender  Total 
           
 Balance at December 31, 2014 $27,200  $-  $27,200 
 Borrowing  105,000   100,000   205,000 
 Repayment  (47,000)  (68,522)  (115,522)
 Conversion to common stock  (10,200)  -   (10,200)
 Balance at September 30, 2015 $75,000  $31,478  $106,478 

 

Notes payable to officers, directors, and shareholders are generally payable on demand with interest at 5%. The $75,000 balance at September 30, 2015 is due to one shareholder, incurs interest at 5%, and is payable at the time the Company meets specified financial conditions. The Company has agreed that at any time prior to repayment of this $75,000 the shareholder can convert the note to Company stock at seventeen cents per share. Interest expense related to officers, directors, and shareholders notes amounted to $9,247 and $259 for the three month periods ended September 30, 2015 and 2014, respectively. Interest expense amounted to $9,531 and $1,165 for the nine month periods ended September 30, 2015 and 2014, respectively. Interest expense for the three month and nine month periods ended September 30, 2015 includes stock options in the amount of $8,500. (see Note 6).

 

The loan payable to the commercial lender requires payment of principal and interest in 252 daily payments of $492 each commencing January 12, 2015. Interest expense for the three month period ended September 30, 2015 amounted to $5,175 and interest expense for the nine month period ended September 30, 2015 amounted to $23,517.