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19. Subsequent Events
3 Months Ended
Mar. 31, 2015
Subsequent Events [Abstract]  
Subsequent Events

Debt Financing

 

On April 8, 2015, the Company entered into an equipment financing agreement with Marlin for a total of $50,000 bearing an effective interest rate of 10.9%, consisting of 36 monthly payments of $1,781; maturing on April 7, 2018. The loan is collateralized with software. Given the nature and status of the software development, no equipment costs have been capitalized.

 

On April 29, 2015, the Company entered into an equipment financing agreement with Macquarie for a total of $25,000 bearing an effective interest rate of 12%, consisting of 36 monthly payments of $833; maturing on April 29, 2018. The loan is collateralized with software. Given the nature and status of the software development, no equipment costs have been capitalized.

 

On March 26, 2015, the Company entered into a loan for $65,250 from Pearl Capital (“Pearl”). The loan bears interest at an effective rate of 15%, consisting of 100 daily weekday payments of $650, maturing on August 26, 2015. The loan is collateralized with future accounts receivable of Epazz, Inc. The promissory note is also personally guaranteed by Shaun Passley, Ph.D., our Chief Executive Officer.

 

On April 3, 2015, the Company entered into a loan for $63,000 from Capital Stack (“Capital Stack”). The loan bears interest at an effective rate of 15%, consisting of 100 daily weekday payments of $599, maturing on September 3, 2015. The loan is collateralized with future accounts receivable of Epazz, Inc. The promissory note is also personally guaranteed by Shaun Passley, Ph.D., our Chief Executive Officer.

 

On April 15, 2015, the Company entered into a loan for $35,000 from 2 Dollars (“2 Dollars”). The loan bears interest at an effective rate of 15%, consisting of 80 daily weekday payments of $434, maturing on August 15, 2015. The loan is collateralized with future accounts receivable of Epazz, Inc. The promissory note is also personally guaranteed by Shaun Passley, Ph.D., our Chief Executive Officer.

 

On May 7, 2015, the Company entered into a loan for $53,000 from Last Chance (“Last Chance”). The loan bears interest at an effective rate of 15%, consisting of 80 daily weekday payments of $699, maturing on August 7, 2015. The loan is collateralized with future accounts receivable of Epazz, Inc. The promissory note is also personally guaranteed by Shaun Passley, Ph.D., our Chief Executive Officer.

  

Related Party Financing

 

Originated April 7, 2015, a $31,250 unsecured promissory note payable, including a $6,250 loan origination fee, to an immediate family member of the Company’s CEO. The note carries a 15% interest rate, matured on April 7, 2016. The note also carries a liquidated damages fee of $1,500 upon default.

 

Originated May 7, 2015, an unsecured $13,750 promissory note payable, including a $2,750 loan origination fee, owed to GG Mars, Inc., a corporation owned by an immediate family member of the Company’s CEO. The note carries a 15% interest rate, matured on May 7, 2015. The note also carries a liquidated damages fee of $1,500 upon default.

 

Originated May 20, 2015, a $25,000 unsecured promissory note payable, including a $5,000 loan origination fee, to an immediate family member of the Company’s CEO. The note carries a 15% interest rate, matured on May 20, 2016. The note also carries a liquidated damages fee of $1,500 upon default.

 

Debt Conversions into Class A Common Stock

 

Debt Conversion by St. George Investments, LLC

 

On April 24, 2015, the Company issued 89,000,000 shares of Class A Common Stock pursuant to the conversion of $5,340 of convertible debt held by St. George Investment LLC, which consisted of $4,620 of principal. The note was converted in accordance with the conversion terms; therefore no gain or loss has been recognized.

 

On May 13, 2015, the Company issued 77,000,000 shares of Class A Common Stock pursuant to the conversion of $5,340 of convertible debt held by St. George Investment LLC, which consisted of $5,340 of principal. The note was converted in accordance with the conversion terms; therefore no gain or loss has been recognized.

 

Debt Conversion by IBC Funds LLC

 

On April 1, 2015, the Company issued 36,000,000 shares of Class A Common Stock pursuant to the conversion of $1,980 of convertible debt held by IBC Funds LLC, which consisted of $1,980 of principal. The note was converted in accordance with the conversion terms; therefore no gain or loss has been recognized.

 

On April 5, 2015, the Company issued 36,000,000 shares of Class A Common Stock pursuant to the conversion of $1,980 of convertible debt held by IBC Funds LLC, which consisted of $1,980 of principal. The note was converted in accordance with the conversion terms; therefore no gain or loss has been recognized.

 

On May 4, 2015, the Company issued 36,000,000 shares of Class A Common Stock pursuant to the conversion of $1,980 of convertible debt held by IBC Funds LLC, which consisted of $1,980 of principal. The note was converted in accordance with the conversion terms; therefore no gain or loss has been recognized.

 

On May 18, 2015, the Company issued 36,000,000 shares of Class A Common Stock pursuant to the conversion of $1,980 of convertible debt held by IBC Funds LLC, which consisted of $6,215 of principal. The note was converted in accordance with the conversion terms; therefore no gain or loss has been recognized.

 

Debt Conversion by KBM Worldwide, Inc.

 

On May 13, 2015, the Company issued 227,100,000 shares of Class A Common Stock pursuant to the conversion of $11,355 of convertible debt held by IBC Funds LLC, which consisted of $11,355 of principal. The note was converted in accordance with the conversion terms; therefore no gain or loss has been recognized.

 

Common A Issuance

On April 30, 2015, the Company issued 450,000,000 shares of Common A Stock to our CEO for services.

 

Debt Conversion by Related Party

 

On April 3, 2015, the Company issued 5,700,000 shares of Class A Common Stock pursuant to the conversion of $2,850 of convertible debt held by Star Financial, a company owned by our CEO’s family member, a related party, which consisted of $2,850 of principal. The note was converted in accordance with the conversion terms; therefore no gain or loss has been recognized.

 

On April 7, 2015, the Company issued 40,000,000 shares of Class A Common Stock pursuant to the conversion of $2,000 of convertible debt held by GG Mars, a company owned by our CEO’s family member, a related party, which consisted of $2,000 of principal. The note was converted in accordance with the conversion terms; therefore no gain or loss has been recognized.

 

On April 14, 2015, the Company issued 100,000,000 shares of Class A Common Stock pursuant to the conversion of $5,000 of convertible debt held by GG Mars, a company owned by our CEO’s family member, a related party, which consisted of $5,000 of principal. The note was converted in accordance with the conversion terms; therefore no gain or loss has been recognized.

 

Debt Conversion

 

On April 13, 2015, the Company issued 110,500,000 shares of Class A Common Stock pursuant to the conversion of $11,050 of convertible debt held by Michael Dobbs, which consisted of $7,333.33 of principal and $3,716.67 of interest. The note was converted in accordance with the conversion terms; therefore no gain or loss has been recognized.

 

On April 13, 2015, the Company issued 110,500,000 shares of Class A Common Stock pursuant to the conversion of $11,050 of convertible debt held by Ronald Aarons, which consisted of $7,333.33 of principal and $3,716.67 of interest. The note was converted in accordance with the conversion terms; therefore no gain or loss has been recognized.

 

On April 13, 2015, the Company issued 110,500,000 shares of Class A Common Stock pursuant to the conversion of $11,050 of convertible debt held by Scott Sanchez, which consisted of $7,333.33 of principal and $3,716.67 of interest. The note was converted in accordance with the conversion terms; therefore no gain or loss has been recognized.

 

Issuances for Services 

 

On April 24, 2015, the Company issued 1,080,000 shares of Class A Common Stock for services to Eduardo Cabrera.

 

On April 24, 2015, the Company issued 1,000,000 shares of Class A Common Stock for services to Wellington Shields Holding LLC.

 

On April 24, 2015, the Company issued 200,000 shares of Class A Common Stock for services to Metaxas Georgatos

 

On April 24, 2015, the Company issued 320,000 shares of Class A Common Stock for services to Vance Thinh.

 

On April 24, 2015, the Company issued 320,000 shares of Class A Common Stock for services to Marc Estigarribia.

 

On April 24, 2015, the Company issued 50,000 shares of Class A Common Stock for services to Juan Ramirez.