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19. Subsequent Events
6 Months Ended
Jun. 30, 2015
Subsequent Events [Abstract]  
Subsequent Events

Debt Financing

 

On July 8, 2015, the Company entered into a loan for $85,800 from TVT Capital, LLC. (“TVT”). The loan bears interest at an effective rate of 15%, consisting of 90 daily weekday payments of $819, maturing on November 13, 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 July 23, 2015, the Company entered into a loan for $48,650 from Global Funding Experts, LLC. (“Global”). The loan bears interest at an effective rate of 10%, consisting of 80 daily weekday payments of $540.55, maturing on October 10, 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 July 20, 2015, the Company entered into a loan for $52,465 from TVT Capital, LLC. (“TVT”). The loan bears interest at an effective rate of 15%, consisting of 80 daily weekday payments of $540.55, maturing on November 10, 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.

 

Debt Conversions into Class A Common Stock

 

Debt Conversion by St. George Investments, LLC

 

On July 22, 2015, the Company issued 3,000,000 shares of Class A Common Stock pursuant to the conversion of $8,548 of convertible debt held by St. George Investment LLC, which consisted of $8,548 of principal. The note was converted in accordance with the conversion terms; therefore no gain or loss has been recognized.

 

On August 3, 2015, the Company issued 6,644,357 shares of Class A Common Stock pursuant to the conversion of $8,571 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.

 

As of August 3, 2015, the St. George’s note has been paid in full.

 

Debt Conversion by JMJ Financial, Inc.

 

On July 7, 2015, the Company issued 1,152,000 shares of Class A Common Stock pursuant to the conversion of $7,603 of convertible debt held by JMJ Financial, which consisted of $7,603 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 July 21, 2015, the Company issued 6,000,000 shares of Class A Common Stock pursuant to the conversion of $15,000 of convertible debt held by KBM Worldwide, which consisted of $15,000 of principal. The note was converted in accordance with the conversion terms; therefore no gain or loss has been recognized.

 

On July 30, 2015, the Company issued 6,666,667 shares of Class A Common Stock pursuant to the conversion of $12,000 of convertible debt held by KBM Worldwide, which consisted of $12,000 of principal. The note was converted in accordance with the conversion terms; therefore no gain or loss has been recognized. 

 

Debt Conversion by Related Party

 

On July 2, 2015, the Company issued 10,000,000 shares of Class A Common Stock pursuant to the conversion of $4,000 of convertible debt held by Star Financial, a company owned by our CEO’s family member, a related party, which consisted of $4,000 of principal. The note was converted in accordance with the conversion terms; therefore no gain or loss has been recognized.

 

On July 22, 2015, the Company issued 8,000,000 shares of Class A Common Stock pursuant to the conversion of $24,000 of convertible debt held by GG Mars, a company owned by our CEO’s family member, a related party, which consisted of $24,000 of principal. The note was converted in accordance with the conversion terms; therefore no gain or loss has been recognized.

 

On July 23, 2015, the Company issued 10,000,000 shares of Class A Common Stock pursuant to the conversion of $25,000 of convertible debt held by GG Mars, a company owned by our CEO’s family member, a related party, which consisted of $25,000 of principal. The note was converted in accordance with the conversion terms; therefore no gain or loss has been recognized.

 

Debt Conversion

 

On July 20, 2015, the Company issued 10,500,000 shares of Class A Common Stock pursuant to the conversion of $18,925 of convertible debt held by Michael Dobbs, which consisted of $18,925 of principal. The note was converted in accordance with the conversion terms; therefore no gain or loss has been recognized.

 

Preferred C Issuances

 

On July 27, 2015, the Company issued 120,000,000 shares of Class A Stock pursuant to the exchange agreement with our CEO in exchange for 40,000,000 shares of Preferred C Stock. As the stock was converted within the terms of the agreement, no gain or loss was recognized as a result of the exchange.