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CONVERTIBLE NOTE PAYABLE (Tables)
 9 Months Ended
Sep. 30, 2014
CONVERTIBLE NOTE PAYABLE  
Schedule of convertible note payable

Our convertible note payable consists of the following:

 

                 
   

September 30,
2014

    

December 31,

2013

  

Convertible note payable-Typenex

   $ 1,657,500     $ —  

Less – current portion

     (282,500 )     —  

Convertible note payable-noncurrent

     1,375,000       —  

Less – unamortized discount

     (659,082 )     —  

Convertible note payable-noncurrent, net

   $ 715,918     $ —  
                 

Convertible note payable-current portion

   $ 282,500     $ —  

Less – unamortized discount

     (235,417 )     —  

Convertible notes payable-current portion, net

   $ 47,083     $ —  

 
Schedule of unamortized debt discount applicable to the initial borrowing
We are amortizing the $282,500 debt discount associated with the initial borrowing on a straight line basis, which approximates the effective interest method, over the nine month repayment term of the initial borrowing.

 

                 
         

Nine Months Ended

September 30,

2014

  

Debt discount - OID

           $ 25,000  

Debt discount – Warrant #1

             118,373  

Debt discount – conversion feature

             151,937  

Less: loss on origination of derivative

             (12,810 )

Debt discount – beginning balance

             282,500  

Less: amortization of debt discount

             (47,083 )

Unamortized debt discount – end of period

           $ 235,417  
Schedule of unamortized debt discount applicable to the noncurrent portion of the Note

Our unamortized debt discount applicable to the noncurrent portion of the Note consists of:

 

                 
         

Nine Months Ended

September 30,

2014

  

Debt discount - OID

           $ 125,000  

Debt discount – Warrants #2 - #6

             576,151  

Debt discount – beginning balance

             701,151  

Less: amortization of debt discount

             (42,069 )

Unamortized debt discount – end of period

           $ 659,082  

 
Schedule of convertible note, net

Our convertible note, net consists of:

 

                 
         

Nine Months Ended

September 30,

2014

  

Note

           $ 1,657,500  

Debt discount – OID

             (150,000 )

Debt discount – Warrants

             (694,524 )

Debt discount – conversion feature

             (151,937 )

Debt discount – conversion feature expensed as loss on origination of derivative

             12,810  

Convertible note, net – beginning of period

             673,849  

Amortization of debt discount

             89,152  

Convertible note, net – end of period

           $ 763,001