XML 24 R13.htm IDEA: XBRL DOCUMENT v2.3.0.15
Payables and Accruals
9 Months Ended
Sep. 30, 2011
Payables and Accruals 
Accounts Payable and Accrued Liabilities Disclosure [Text Block]

10.  Notes Payable

 

On July 1, 2010 LYFE entered into a short-term note payable of $40,000 with Smith Consulting Services (SCS) and affiliates.   The loan does not have an interest rate or due date. The Company has imputed and accrued $1,099 interest on the note as of September 30, 2011.

 

During 2010, the Company borrowed $65,000 with a stated interest rate of 18%. Of which, $15,000 was due on November 5, 2010. The remaining $50,000 is due on October 1, 2011.

On May 13, 2011 the original holder of the two notes totaling $65,000 assigned the entire debt to a new holder.  The Company also agreed to a debt modification whereby the interest rate was reduced to 12%; the maturity date was modified to May 13, 2012; and provided for conversion rights that allow the holder of the note to convert all, or any part, of the remaining principal balance into the Company’s common stock at a price equal to 50% of the average of the lowest three trading prices of the common stock during the most recent ten day period.  The Company issued 2,186,920 shares in exchange for a principal reduction of $65,000 related to this note. 

 

On October 1, 2010, the Company signed a $50,000 convertible promissory note with a third party. The note bears interest at 18% per annum and was due on November 5, 2010.  The note has conversion rights that allow the holder of the note at any time to convert all or any part of the remaining principal balance into the Company’s common stock at a price of $0.70.  As of September 30, 2011 LYFE has accrued $9,422 in interest on the note payable and recorded $2,616 in interest expense for the three months ending September 30, 2011.  The Company is currently in default as no payments have been made on the note.

 

On December 9, 2010, the Company signed a $40,000 convertible promissory note with a third party.  The note bears interest at 8% per annum and is due on September 13, 2011.  The note has conversion rights that allow the holder of the note at any time to convert all or any part of the remaining principal balance into the Company’s common stock at a price equal to 55% of the average of the lowest three trading prices for the common stock during the most recent ten day period.  In June, 2011, the Company issued 1,201,032 common shares in exchange for the $40,000 principal and $1,600 in accrued interest. 

 

On January 21, 2011, the Company signed a $40,000 convertible promissory note with a third party.  The note bears interest at 8% per annum and is due on October 24, 2011.  The note has conversion rights that allow the holder of the note at any time to convert all or any part of the remaining principal balance into the Company’s common stock at a price equal to 55% of the average of the lowest three trading prices for the Common Stock during the most recent ten day period.  In August, 2011, the Company issued 2,320,463 common shares in exchange for the $40,000 principal and $1,600 in accrued interest.  As of September 30, 2011 LYFE has accrued $1,954 in interest on the note payable and recorded $311 in interest expense for the three months ending September 30, 2011. 

 

On March 25, 2011 the Company entered into a short-term note payable of $7,500 with Smith Consulting Services (SCS).  The note is due on demand with an 18% interest rate.  As of September 30, 2011 LYFE has accrued $1,092 interest on the note payable and recorded $375 in interest expense for the three months ending September 30, 2011.  No payments have been made on this note.

 

On May 13, 2011, the Company signed a $20,000 convertible promissory note with a third party.  The note bears interest at 12% per annum and is due on January 13, 2012.  The note has conversion rights that allow the holder of the note at any time to convert all or any part of the remaining principal balance into the Company’s common stock at a price equal to 50% of the average of the lowest three trading prices for the Common Stock during the most recent ten day period.  Consequently, the liability has been recorded at $40,000 on the balance sheet.  The difference between the face value has been recognized as interest expense.  As of September 30, 2011 LYFE has accrued $600 in interest on the note payable and recorded $600 in interest expense for the three months ending September 30, 2011. 

 

On May 17, 2011, the Company signed a $6,400 convertible promissory note with a third party.  The note bears interest at 2% per month and is due on August 17, 2011.  The note has conversion rights that allow the holder of the note at any time to convert all or any part of the remaining principal balance into the Company’s common stock at a discount to the price equal to 70% of the average daily closing trading prices for the Common Stock during the most recent five day period.  Consequently, the liability has been recorded at $21,333 on the balance sheet. The difference between the face value has been recognized as interest expense.  As of September 30, 2011 LYFE has accrued $572 in interest on the note payable and recorded $572 in interest expense for the three months ending September 30, 2011. 

 

On May 24, 2011, the Company signed a $40,000 convertible promissory note with a third party.  The note bears interest at 8% per annum and is due on March 6, 2012.  The note has conversion rights that allow the holder of the note at any time to convert all or any part of the remaining principal balance into the Company’s common stock at a price equal to 50% of the average of the lowest three trading prices for the Common Stock during the most recent ten day period.  Consequently, the liability has been recorded at $80,000 on the balance sheet.  The difference between the face value has been recognized as interest expense.  As of September 30, 2011 LYFE has accrued $1,013 in interest on the note payable and recorded $800 in interest expense for the three months ending September 30, 2011.  

 

On May 31, 2011, a shareholder loaned the Company $5,000 on a short-term convertible note payable.  The note is due on February 10, 2012 and has an 8% interest rate.  The note provides for the conversion of principal plus interest into the Company’s common stock at a price equal to 50% of the market price on date of conversion.  Consequently, the liability has been recorded at $10,000 on the balance sheet.  The difference between the face value has been recognized as interest expense.  As of September 30, 2011, the Company had accrued interest of $133 and recorded interest of $101 for the three months ending September 30, 2011.

 

On July 20, 2011, the Company signed a $35,000 convertible promissory note with a third party.  The note bears interest at 8% per annum and is due on April 20, 2012.  The note has conversion rights that allow the holder of the note at any time to convert all or any part of the remaining principal balance into the Company’s common stock at a price equal to 50% of the average of the lowest three trading prices for the Common Stock during the most recent ten day period.  Consequently, the liability has been recorded at $70,000 on the balance sheet.  The difference between the face value has been recognized as interest expense.  As of September 30, 2011 LYFE has accrued $552 in interest on the note payable and recorded $552 in interest expense for the three months ending September 30, 2011. 

 

On August 10, 2011, the Company signed a $100,000 convertible promissory note with a third party.  The note bears interest at 8% per annum and is due on February 10, 2012.  The note has conversion rights that allow the holder of the note at any time to convert all or any part of the remaining principal balance into the Company’s common stock at a price of $0.02.  The Company calculated the value of the BCF using the intrinsic method as stipulated in ASC 470.    The value of the beneficial conversion feature (“BCF”) of the note has been calculated at $20,000.  For the three months ended September 30, 2011, the Company recorded approximately, $5,000 in amortization.  As of September 30, 2011 LYFE has accrued $1,133 in interest on the note payable and recorded $1,133 in interest expense for the three months ending September 30, 2011.

 

On August 10, 2011, the Company signed a $65,000 convertible promissory note with a third party.  The note bears interest at 8% per annum and is due on February 10, 2012.  The note has conversion rights that allow the holder of the note at any time to convert all or any part of the remaining principal balance into the Company’s common stock at a price of $0.02.  The Company calculated the value of the BCF using the intrinsic method as stipulated in ASC 470.    The value of the BCF of the note has been calculated at $13,000.  For the three months ended September 30, 2011, the Company recorded approximately, $3,250 in amortization.  As of September 30, 2011 LYFE has accrued $727 in interest on the note payable and recorded $727 in interest expense for the three months ending September 30, 2011.