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Note 5. Notes Payable.
6 Months Ended
Jun. 30, 2016
Notes  
Note 5. Notes Payable.

Note 5. Notes Payable.

Convertible Notes Payable

On March 24, 2016, the Company issued a convertible promissory note to GoldMed Ltd. in the amount of $75,000. The Convertible Note is convertible to 187,500 units at $0.40 (the "Units"), each unit comprised of one share of common stock and one Class A warrant exercisable at $0.80 per share with a term 24 months. Since the market price on the date of issuance was higher than the conversion price, a beneficial conversion feature was calculated at $78,750, but only $75,000 was recorded. $20,137 was recorded as amortization expense of for the period ending June 30, 2016, compared to amortization expense of $0 as of December 31, 2015.

On June 20, 2016, a $400,000 convertible note payable and 200,000 warrants exercisable at $0.80 per share with a term of 24 months was issued to Alpha Capital. The note included a beneficial conversion feature which resulted in a $300,000 discount recorded as a reduction of debt and an increase to additional paid in capital. The Company recorded an amortization expense of $8,219 related to this note.

On March 31, 2016, a $80,000 convertible note payable and 200,000 warrants exercisable at $0.80 per share with a term of 24 months was issued to Maz Partner. The note included a beneficial conversion feature which resulted in a $46,000 discount recorded as a reduction of debt and an increase to additional paid in capital. The Company recorded an amortization expense of $11,468 related to this note.

On May 24, 2016, a convertible note payable was issued to Ilan Malka. The note included a beneficial conversion feature which resulted in a $35,000 discount recorded as a reduction of debt and an increase to additional paid in capital. The Company recorded an amortization expense of $3,548 related to this note.