XML 21 R9.htm IDEA: XBRL DOCUMENT v3.5.0.2
4. Notes Payable
6 Months Ended
Jun. 30, 2016
Notes to Financial Statements  
4. Notes Payable

A Note Payable having a face value of $19,142 was entered into on December 31, 2015. This Note accrues interest at a rate of 12% per annum. This is a non-convertible note due on December 31, 2016.

 

A Note having a principal balance of $83,000 as of December 31, 2015 was fully converted, together with $3,320 of accrued interest thereon, into $0.001 par value Common Stock during the three month period ended March 31, 2016. In connection therewith, 9,906,049 shares of $0.001 par value Common Stock valued at $146,658 were issued generating a loss of $63,658 on conversion.

 

A Note having a face value of $203,036 with interest of 12% was due June 30, 2016. This Note was convertible after December 31, 2015 into $0.001 par value Common Stock at a price 35% below market value. During the period ended June 30, 2016, a total of $38,036 in principal was converted into $0.001 par value Common Stock leaving a principal balance of $165,000. In connection with this conversion, 7,705,186 shares of $0.001 par value Common Stock valued at $231,156 were issued generating a loss of $193,120 on conversion. On July 1, 2016, the Company executed a new note payable having a face value of $174,852.00 comprised of the principal amount of this Note ($165,000.00) plus all accrued interest accrued thereon ($9,852.00). The new note is due on March 31, 2017. It also accrues interest at 12% and is convertible at a price 35% below market value.

 

On February 18, 2016, the Company received monies in exchange for a note due November 18, 2016 having a face value of $85,000 and accruing interest at 8%. The Note is convertible after 180 days from issuance into $0.001 par value Common Stock at a price 35% below market value. The Company estimates that the fair value of this convertible debt approximates the face value, so no value has been assigned to the beneficial conversion feature.

 

On June 30, 2016, the Company received net proceeds of $49,150 in exchange for a note payable executed on July 1, 2016, having a face value of $55,000 and accruing interest at the rate of 10% per annum. The Note, due on April 1, 2017, is convertible after 180 days from issuance into $0.001 par value Common Stock at a price 40% below market value. The Company estimates that the fair value of this convertible debt approximates the face value, so no value has been assigned to the beneficial conversion feature.

 

At June 30, 2016 and December 31, 2015, accrued interest on Notes Payable was $16,487 and $2,656, respectively.