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Notes Payable

12 Months Ended

Dec. 31, 2014

Notes Payable [Abstract]

Note 6 – Note Payable

Note payable consists of the following at December 31, 2014 and 2013, respectively:

		December 31,				December 31,
		2014				2013

Effective April 29, 2013, the Company entered into a purchase agreement (the “Purchase Agreement”) to acquire an industrial building located at 355 Chemin du Pouvoir, Edmundston, New Brunswick, Canada (the “Property”). The total purchase price of the Property was $300,000 CAD. The Company made an initial deposit related to the Purchase Agreement on March 26, 2013, totaling $25,000 CAD, and $125,000 CAD was paid on April 29, 2013. Half of the remaining balance of $150,000 CAD is due on March 29, 2015 and the other half is due on March 29, 2016. The amounts due under the Purchase Agreement are non-interest bearing. The Purchase Agreement contains a negative covenant that restricts the Company from taking out an additional mortgage on the Property of more than 80% of the Property’s market value, if the Property‘s market value is less than $750,000 CAD. The Company applied an effective interest rate of 5.95% to the amount due under the Purchase Agreement, and recorded a discount of $19,235 related to the amount due. The Company recorded the purchase of the Property at cost, and capitalized approximately $33,361 CAD in additional expenses related to conditioning the Property for use. The Company estimates an 18 year useful life. The Company estimated land associated with Purchase Agreement and the Property to be valued at $17,908 CAD.		$	129,304			$	140,239

Less: current portion of unamortized debt discounts			(4,625	)			-
Less: current portion, net discounts of $4,625 and $-0-, respectively			(60,025	)			-
Less: unamortized debt discounts			(1,040	)			(13,786	)

Note payable, less current portion, net discounts of $1,040 and $13,786, respectively		$	63,614			$	126,453

The Company recorded interest expense in the amount of $7,494 and $4,943 related to the amortization of the debt discount for the years ended December 31, 2014 and 2013, respectively.

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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