Interest Expense Non-Related Parties and Other Expense (Income), Net

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Interest Expense Non-Related Parties and Other Expense (Income), Net

16. INTEREST EXPENSE NON-RELATED PARTIES AND OTHER EXPENSE (INCOME), NET

For the three months ended September 30, 2016, non-related parties interest expense of $7,734 is comprised of $7.695 interest on convertible debentures and $39 interest on notes payable and other interest. For the three months ended September 30, 2015, non-related parties interest expense of $9,269 is comprised of $9,177 interest on convertible debentures and $77 interest on notes payable and other interest.

For the nine months ended September 30, 2016, non-related parties interest expense of $23,251 is comprised of $23,093 interest on convertible debentures and $158 interest on notes payable and other interest. For the nine months ended September 30, 2015, non-related parties interest expense of $27,800 is comprised of $27,531 interest on convertible debentures and $269 interest on notes payable and other interest.

For the three months ended September 30, 2016, $3,173 other income, net is comprised primarily of $2,273 from the expiration of online training liability certificates and no other individually significant items. For the three months ended September 30, 2015, $6,494 other income, net is comprised of $7,200 legal settlement receivable and no other individually significant items.

For the nine months ended September 30, 2016, $233,825 was recognized in debt settlement and was comprised primarily of $93,459 cancelation of a convertible debenture and its interest, $140,366 cancelation of an employee bonus payable, other income of $40,292 consisted primarily of $14,970 royalty income, $13,605 from the expiration of online training liability certificates, $2,009 insurance premium refund, $6,617 reconciliation adjustments and no other individually significant items. For the nine months ended September 30, 2015, $4,264 other income, net is comprised primarily of $7,200 legal settlement, $3,471 royalty income on licensed patents, $1,800 sales of fixed assets, $2,930 other income, net of individually insignificant items and is partially offset by $11,137 insurance expense audit adjustments.