NOTE 13 - CONVERTIBLE NOTES PAYABLE

9 Months Ended

Sep. 30, 2016

Convertible Note Payable [Abstract]

Convertible Note Payable [Text Block]

NOTE 13 – CONVERTIBLE NOTES PAYABLE

The Company’s total convertible notes payable at September 30, 2016 was $598,500.  The following table shows the components of convertible notes payable at September 30, 2016 and December 31, 2015, respectively: 

	September 30,			December 31,
	2016			2015
	(Unaudited)
Total Convertible Notes Payable at beginning of period	$	30,000		$	398,786
Plus:  additional notes payable		568,500			526,315
Less:  note conversions		-			(895,101	)
Total Convertible Notes Payable at end of period		598,500			30,000
Less: current portion		(568,500	)		-
Convertible notes payable, net, long-term portion	$	30,000		$	30,000

The outstanding convertible note in the principal amount of $30,000 is convertible into shares of Company common stock at the option of the Payee at $11.00 per share. Unless earlier converted, the note is due on April 1, 2018.

In September 2016, the Company issued a twelve-month note with a principal balance of $631,579 and received gross proceeds of $600,000.  The note had an original issue discount of 5% and bears interest at 12%, per annum for the term of the note. After the note’s five-month anniversary, the holder of the note may convert the note into shares of the Company’s common stock at $1.25 per share. The Company incurred $31,500 of issue costs to be amortized over the term of the note.