LONG TERM DEBT	3 Months Ended
Mar. 31, 2016
LONG TERM DEBT
LONG TERM DEBT	NOTE 3 – LONG TERM DEBT Convertible Promissory Note Convertible promissory notes were issued in the aggregate amount of $950,000 in November and December 2015. The term of the notes are three years. Interest rate is a “Royalty Payment” which consists of a percentage of net Profit of certain transactions, payable within 45 days of the end of each quarter. Prior to maturity the notes may be converted for common stock at a conversion price of $2.50. The holders of the notes were granted warrants at one common stock for $3.00 of the note amount, 316,667 warrants were issued at a strike price of $0.01 with an expiration date of five years from date of issuance. An additional 10,000 warrants were issued under the same terms. The Company evaluated the embedded conversion feature within the above convertible notes under ASC 815-15 and ASC 815 40 and determined embedded conversion feature does not meet the definition of a liability. Then the Company evaluated the conversion feature for a beneficial conversion feature at inception. The Company accounted for the intrinsic value of a Beneficial Conversion Feature inherent to the convertible note payable and a total debt discount of $0 was recorded. The Company also uses the Black-Scholes pricing model to estimate the fair value of the warrants issued along with convertible notes on the date of grant. The Company accounted for relative fair value of the warrants issued and a total debt discount of $251,883 was recorded. During the three months ended March 31, 2016 debt discount of $20,991 was amortized. As of March 31, 2016, convertible note has a balance of $729,379, net of $220,621 unamortized debt discount.

LONG TERM DEBT

3 Months Ended

Mar. 31, 2016

NOTE 3 – LONG TERM DEBT

Convertible Promissory Note

Convertible promissory notes were issued in the aggregate amount of $950,000 in November and December 2015. The term of the notes are three years. Interest rate is a “Royalty Payment” which consists of a percentage of net Profit of certain transactions, payable within 45 days of the end of each quarter. Prior to maturity the notes may be converted for common stock at a conversion price of $2.50. The holders of the notes were granted warrants at one common stock for $3.00 of the note amount, 316,667 warrants were issued at a strike price of $0.01 with an expiration date of five years from date of issuance. An additional 10,000 warrants were issued under the same terms.

The Company evaluated the embedded conversion feature within the above convertible notes under ASC 815-15 and ASC 815 40 and determined embedded conversion feature does not meet the definition of a liability. Then the Company evaluated the conversion feature for a beneficial conversion feature at inception. The Company accounted for the intrinsic value of a Beneficial Conversion Feature inherent to the convertible note payable and a total debt discount of $0 was recorded.

The Company also uses the Black-Scholes pricing model to estimate the fair value of the warrants issued along with convertible notes on the date of grant. The Company accounted for relative fair value of the warrants issued and a total debt discount of $251,883 was recorded.

During the three months ended March 31, 2016 debt discount of $20,991 was amortized. As of March 31, 2016, convertible note has a balance of $729,379, net of $220,621 unamortized debt discount.