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8. Notes Payable
3 Months Ended
Mar. 31, 2013
Notes  
8. Notes Payable

 

 

Note 8  Notes Payable

 

At March 31,2013 the Company was liable on the following Promissory notes:

 

(See notes below to the accompanying table)

 

Date of

 

 

 

 

Date Obligation

 

Interest

 

 

Balance Due

 

Obligation

 

Notes

 

 

Matures

 

Rate (%)

 

 

3/31/13 ($)

 

2/8/2011

 

 

1

 

 

7/27/2011

 

 

24

 

 

 

20,000

 

8/4/2011

 

 

2

 

 

8/4/2012

 

 

24

 

 

 

175,000

 

7/31/2012

 

 

3

 

 

7/31/2015

 

 

14

 

 

 

150,000

 

12/17/2012

 

 

4

 

 

9/19/2013

 

 

8

 

 

 

27,500

 

8/31/2012

 

 

5

 

 

8/31/2013

 

 

14

 

 

 

100,000

 

1/11/2013

 

 

  6

 

 

  1/11/2014

 

 

  12

 

 

 

5,000

 

  1/11/2013

 

 

  7

 

 

 1/11/2014

 

 

  12

 

 

 

35,000

 

2/30/2013

 

 

8

 

 

11/13/2013

 

 

10

 

 

 

31,500

 

1/30/2013

 

 

  9

 

 

  11/1/2013

 

 

  8

 

 

 

27,500

 

                     3/27/2013

 

 

  10

 

 

 

 

 

 

 

 

 

11,300

 

 

 

 

 

 

 

 

 

 

 

 

 

 

580,300

 

Unamortized discount

 

 

 

 

 

 

 

 

 

 

 

 

71,886

 

 

 

 

 

 

 

 

 

 

 

 

 

 

510,914

 

 

 

Note 1:  As of March 31, 2013 the Company had a promissory note of $20,000 for which no payments were made during the period and there is $ 9,929 in accrued interest on the note.

 

Note 2:   As of March 31, 2013 the Company had promissory notes outstanding in the amount of $175,000 for which no payments were made during the period and there is $85,590 in accrued interest on the note.

 

Note 3:    As of March 31, 2013 the Company had a promissory note in the amount of $450,000 plus compounded interest in the amount of   $54,245. On March 29, 2013, the Company entered into a subscription receivable agreement with the note holder to pay $300,000 of the note with 2,857,152 shares of Common Stock.  These shares remain unissued at March 31, 2013. 

 

Note 4:    As of March 31, 2013 the Company had a note outstanding in the amount of $27,500 for which no payment was made during the period and there is $629 in accrued interest on the note.  A debt discount was recorded for $27,500 based on the fact that there was a beneficial conversion feature in the promissory note.  Total debt discount amortization for the period was $9,167. This note is convertible into a number of shares by dividing the principal and interest owed by the greater of $0.00005 or 45% of the average lowest 3 trading prices over the 20 days prior to the conversion date.  This conversion option does not become effective until 180 days after issuance of the note.  No embedded derivative exists in this promissory note.  

 

Note 5:    As of March 31, 2013 the Company had a discounted note outstanding in the amount of $100,000 for which no payments were made during the period and there is $5,833 in accrued interest on the note.  The 10% discount is being amortized  over the life of the loan.  Total debt discount amortization for the period totaled $3,342.

 

Note 6:   During the quarter ended March 31, 2013 the Company received cash proceeds of $5,000 for this debt obligation which bears interest at the rate of 12%. A debt discount was recorded for $5,000 based on the fact that there was a beneficial conversion feature in the promissory note.  Total debt discount amortization for the period was $1,082. This note is convertible into a number of shares by dividing the principal and interest owed by 30% of the average lowest trading price during a 15 day trading period prior to the date of conversion.  This conversion option does not become effective until 180 days after issuance of the note.  No embedded derivative exists in this promissory note.  No payments were made during the period and there is accrued interest of $150 on the note.

 

Note 7:   During the quarter ended March 31, 2013 the Company received cash proceeds of $35,000 for this debt obligation which bears interest at the rate of 12%.  No payments were made during the period and there is $1,036 in accrued interest on the note. A debt discount  was recorded for $27,500 based on the fact that there was a beneficial conversion feature in the promissory note.  Total debt discount amortization for the period was $7,575. This note is convertible into a number of shares by dividing the principal and interest owed by the greater of 30% of the average lowest trading prices over the 15 days prior to the conversion date.  This conversion option does not become effective until 180 days after issuance of the note.  No embedded derivative exists in this promissory note.  Financing costs of $6,000 were paid in conjunction with this debt.  These fees are amortized over the term of the loan and a total of $1,512 was amortized as of March 31, 2013. 

 

Note 8:   During the quarter ended March 31, 2013 the Company received cash proceeds of $12,500 for this debt obligation which bears interest at the rate of 6%.  No payments were made during the period and there is accrued interest of $184 on the note.  In addition the Company received cash proceeds of $19,000 for another debt obligation which also bears interest at the rate of 6%.  

 

Note 9:   During the quarter ended March 31 ,2013  the Company received cash proceeds of $25,000 for this debt obligation which bears interest at the rate of 8%.  No payments were made during the quarter and there is accrued interest of $493 on the note. .  A debt discount  was recorded for $25,000 based on the fact that there was a beneficial conversion feature in the promissory note.  Total debt discount amortization for the period was $5,556. This note is convertible into a number of shares by dividing the principal and interest owed by the greater of $0.00005 or 45% of the average lowest 3 trading prices over the 20 days prior to the conversion date.  This conversion option does not become effective until 180 days after issuance of the note.  No embedded derivative exists in this promissory note.  

 

Note 10:  During the quarter ended March 31, 2013 the Company received cash advances of $11,300 related to a debt obligation.