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CONVERTIBLE PROMISSORY NOTE
12 Months Ended
Dec. 31, 2014
Notes to Financial Statements  
CONVERTIBLE PROMISSORY NOTE, RELATED PARTY

On July 1, 2014, the Company entered into an agreement with a related party to convert $226,785 advances to a convertible promissory note. The note is due on January 1, 2015 and carries a fixed convertible price of $0.01 and interest rate of 5%. As a result of the fixed conversion price, the Company recognized and expensed a discount of $226,785 during 2014.

 

On the same date, the related party assigned $166,000 of the principal to 22 third parties with the same terms. The note assignment carries the same conversion terms, interest and maturity; therefore, the discount was recognized and expensed apart of the $226,785 initial discount. As of December 31, 2014 the Company recorded accrued interest of $4,161.

 

The remaining principal balance due to the related party is $60,785 with an accrued interest of $1,524 as of December 31, 2014.