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Notes Payable
 12 Months Ended
Dec. 31, 2015
Notes Payable [Abstract]  
Notes Payable
5.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 Lenders  Total 
           
 Balance at December 31, 2013 $40,200  $-  $40,200 
 Borrowing  67,000   -   67,000 
 Repayment  (80,000)  -   (80,000)
 Balance at December 31, 2014  27,200   -   27,200 
              
 Borrowing  105,000   200,000   305,000 
 Repayment  (47,000)  (100,000)  (147,000)
 Conversion to common stock  (85,200)  -   (85,200)
              
 Balance at December 31, 2015 $-  $100,000  $100,000 

 

Officers, directors, and shareholders

 

Notes payable to officers, directors, and shareholders are generally payable on demand with interest at 5% per annum. During 2015 two shareholders, with notes totaling $85,200, converted the notes to Company stock at seventeen cents per share. Interest expense related to officers, directors, and shareholders notes amounted to $10,508 and $4,683 for the years ended December 31, 2015 and 2014, respectively. Interest expense for the year ended December 31, 2015 includes $8,500 resulting from the issuance of stock options. (see note 7)

 

Commercial lenders

 

In January 2015 the Company borrowed $100,000 from a commercial lender. The loan required payment of principal and interest in 252 daily payments of $492 each commencing January 12, 2015. In December 2015 the Company repaid the remaining outstanding principal balance. Interest for the year ended December 31, 2015 amounted to $25,425.

 

In November 2015 the Company borrowed $100,000 from a second commercial lender. The loan incurs interest at 11% and is payable on November 1, 2016. Interest for the year ended December 31, 2015 amounted to $1,543.