XML 29 R13.htm IDEA: XBRL DOCUMENT v2.4.0.8
Convertible Notes Payable
3 Months Ended
Sep. 30, 2013
Convertible Notes Payable  
NOTE 8- CONVERTIBLE NOTES PAYABLE

On December 30, 2012, the Company entered into a convertible promissory note with Globe Financial Corp. for $201,000 bearing no interest and convertible at a 50% discount to market. The note is payable on demand. Since the conversion rate is discounted to market, the Company calculated a derivative liability of $2,455,751 at June 30, 2013 using the Black Scholes Model, plus for the three months ended September 30, 2013 an additional $2,870,684.

 

On December 31, 2012, the Company entered into a convertible promissory note with Globe Financial Corp. for $90,000 bearing no interest and convertible at a 50% discount to market. The note is payable on demand. Since the conversion rate is discounted to market, the Company calculated a derivative liability of $1,175,578 at June 30, 2013 using the Black Scholes Model and recorded an additional $1,374,256 for the three months ended September 30, 2013.

 

On January 5, 2013, the Company entered into a convertible promissory note with Asus Global Holdings Inc. for $475,000 bearing no interest and convertible at a 50% discount to market. The note is payable on demand. Since the conversion rate is discounted to market, the Company calculated a derivative liability of $5,817,112 at June 30, 2013 using the Black Scholes Model and recorded an additional $6,800,150 for the three months ended September 30, 2013.

 

In the three months ended September 30, 2013 the Company entered into a new convertible note agreement with Asus Global Holdings for $150,000 with the same terms as previously noted. The Company recorded a derivative liability of $577,943 using the Black Scholes Model.

 

At September 30, 2013, the balance due against these four convertible notes was $916,000. In connection with the issuance of these convertible notes the Company recorded a derivative liability of $21,071,474 as of September 30, 2013.