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RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
NOTE 3 - RELATED PARTY TRANSACTIONS

The Company is provided office space by one of the officers and directors at no charge. The Company believes that this office space is sufficient for its needs for the foreseeable future.

 

As of June 30, 2017 and December 31, 2016, the Company had a payable of $10,583 and $10,583, respectively, to Montse Zaman, director. The payable is unsecured, bears no interest and due on demand.

 

As of June 30, 2017, the Company had outstanding notes payable to related parties of $6,328, net of unamortized debt discount of $758. During the six months ended June 30, 2017 the Company issued a convertible note of $970 with conversion price at $0.50. As of June 30, 2017 the aggregate outstanding principal balance under these related party notes payable was $7,086. These notes payables are with various officers and directors of the Company and with entities controlled by officers or directors of the Company including Mike Zaman, Montse Zaman and etc.

 

The Company evaluated embedded conversion features within convertible debt under ASC 815 "Derivatives and Hedging" and determine the embedded conversion feature(s) should not be bifurcated from the host instrument and not accounted for as a derivative. The Company further evaluated the instrument under ASC 470-20 "Debt with Conversion and Other Options" and determine the conversion option is a beneficial conversion feature (BCF). The intrinsic value of the BCF is determined to be $970, and is recognized as debt discount with a corresponding credit to additional paid in capital. The discount is amortized over the life of the loan.