XML 23 R9.htm IDEA: XBRL DOCUMENT v3.7.0.1
4. Notes Payable
3 Months Ended
Mar. 31, 2017
Notes to Financial Statements  
4. Notes Payable

A Note Payable having a face value of $21,439 and a maturity date of December 31, 2017 was entered into on December 31, 2016. This Note accrues interest at a rate of 12% per annum and is convertible after December 31, 2016 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.

 

A Note payable dated July 1, 2016, having a face value of $55,000 and a principal balance of $48,500 at December 31, 2016, accrued interest at 10%. This note was convertible into $0.001 par value Common Stock at a price 40% below market value. During the three month period ended March 31, 2017, a total of $48,500 in principal and $3,022 of interest was converted into $0.001 par value Common Stock leaving a principal balance of $-0-. In connection with this conversion, 42,528,125 shares of $0.001 par value Common Stock valued at $128,451 were issued generating a loss of $76,929 on conversion.

 

On February 10, 2017, the Company received net proceeds of $48,000 in exchange for a note payable having a face value of $50,000 and accruing interest at the rate of 8% per annum. The note, due on November 20, 2017, is convertible after 180 days from issuance into $0.001 par value Common Stock at a price 39% 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. In connection with this note, 204,918,033 shares of the Company’s Common Stock have been reserved for issuance.

  

At March 31, 2017 and December 31, 2016, accrued interest on Notes Payable was $15,124 and $9,011, respectively.