XML 14 R9.htm IDEA: XBRL DOCUMENT v2.4.1.9
4. NOTES PAYABLE MODIFICATION
9 Months Ended
Dec. 31, 2014
Debt Disclosure [Abstract]  
4. NOTES PAYABLE MODIFICATION

NOTE 4 – NOTES PAYABLE MODIFICATION

 

On December 1, 2014, the Company consolidated, renewed and modified certain notes payables that are convertible into common stock of the Company. At the issuance of the new notes, the conversion price was decreased to $.02 per share and the interest rate was reduced to 2%. The notes were evaluated pursuant to ASC470-60 Troubled Debt Restructuring and ASC 470-50 Modification and Extinguishment. The change in the fair value of the conversion option was greater than 10% of the carrying value of the debt immediately prior to the modification however there was no accounting impact as there were no direct costs associated with the modification to capitalize, fees paid to lenders or unamortized discounts to account for.

 

The Company had eight notes payable to and an advance from the CEO which were combined and renewed into one note in the amount of $664,455.

 

The Company had two notes payable to and an advance from a related party which were combined and renewed into one note in the amount of $10,397.

 

The Company had a note payable to a party which were renewed in the amount of $20,000.

 

All the consolidated, renewed and modified notes and accrued interest are convertible into common stock at $.02 per share. The notes bear interest at 2%.