Related Party Notes Payable

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Related Party Notes Payable

NOTE 6 - RELATED PARTY NOTES PAYABLE

Related Party notes payable consists of the following at December 31,:

	2015		2014
Unsecured Demand Promissory Note (provided by a related party) bearing interest of 4% per annum.	$	1,593,291	$	8,850
Secured Promissory Notes (provided by a related party -$1,000,000 in November 19, 2014) bearing interest of 12% per annum compounded annually, together with a five-year warrant to purchase up to one million shares of the Company’s common stock at an exercise price of $0.12 per share,and payable upon maturity in 2019 and secured by a security interest in substantially all of the assets of the Company and its subsidiaries.		1,100,961		959,736
Secured Promissory Notes (provided by a related party - $1,000,000 in August 29, 2013 and $2,000,000 in September 31, 2014) bearing interest of 12% per annum compounded annually, together with a five-year warrant to purchase up to three million shares of the Company’s common stock at an exercise price of $0.54 per share and payable upon maturity in 2018 and secured by a security interest in substantially all of the assets of the Company and its subsidiaries.		3,392,980		2,794,220
Total		6,087,232		3,762,806
Less: current portion		1,593,291		8,850
Secured promissory notes – related party	$	4,493,941	$	3,753,956

	2015			2014
Continuity of Secured Promissory Notes – Related Party
Face value of November 19, 2014 secured note payable	$	1,000,000		$	1,000,000
Face value of August 29, 2013 secured note payable		1,000,000			1,000,000
Face value of September 30, 2013 secured note payable		2,000,000			2,000,000
Total face value of promissory notes payable		4,000,000			4,000,000
Discount on November 19, 2014 secured notes payable ( 1,000,000 warrants)		(58,082	)		(58,082	)
Discount on August 29, 2013 secured note payable (1,000,000 warrants)		(310,200	)		(310,200	)
Discount on September 30, 2013 secured note payable (2,000,000 warrants)		(600,400	)		(600,400	)
Accretion of discount on secured notes payable ($4,000,000 secured note payable)		431,007			234,413
Interest on secured notes payable($4,000,000 secured note payable)		1,031,616			488,225
Carrying value of Secured Promissory Notes	$	4,493,941		$	3,753,956

The following annual payments of principal and interest are required over the next five years in respect to these related party notes payable:

Years Ending December 31,	Annual Payments
2016	$	1,593,291
2017		-
2018		3,392,980
2019		1,100,961
2020		-
Total	$	6,087,232