2.4.0.8106 - Disclosure - CONVERTIBLE NOTES PAYABLEtruefalsefalse1false falsefalsefrom-2012-10-01-to-2013-06-30.174.0.0.0.0.0.0.0http://www.sec.gov/CIK0001502152duration2012-10-01T00:00:002013-06-30T00:00:001true 1us-gaap_DebtDisclosureAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse0CONVERTIBLE NOTES PAYABLE [Abstract]2false 2us-gaap_DebtDisclosureTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseterseLabel1falsefalsefalse00<div> <div style="WIDTH: 720px"> NOTE 6. CONVERTIBLE NOTES PAYABLE During the nine months ended June 30, 2013, the holders of the Convertible Note Payable dated January 31, 2012 elected to convert principal and accrued interest in the amounts shown below into shares of common stock at a rate of $0.04 per share. On the conversion date, the unamortized discount related to the principal amount converted was immediately amortized to interest expense. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement which provided for conversion at $0.04 per share. <table style="FONT-SIZE: 10pt; MARGIN-TOP: 0px" cellspacing="0" cellpadding="0" align="center"> <tr style="FONT-SIZE: 1pt"> <td width="130"> </td> <td width="16"> </td> <td width="14"> </td> <td width="79"> </td> <td width="17"> </td> <td width="94"> </td> <td width="13"> </td> <td width="13"> </td> <td width="82"> </td> <td width="17"> </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="130"> Date </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="16">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="94" colspan="2"> Amount Converted </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="17">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="94"> Number of Shares Issued </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="13">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px" valign="bottom" width="95" colspan="2"> Unamortized Discount </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="17">   </td> </tr> <tr> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="130"> November 30, 2012 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="16">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="14"> $ </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="79"> 22,000 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="17">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="94"> 550,000 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="13">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="13"> $ </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="82"> 18,262 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="17">   </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="130"> January 7, 2013 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="16">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="14">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="79"> 12,000 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="17">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="94"> 300,000 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="13">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="13">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="82"> 9,543 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="17">   </td> </tr> <tr> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="130"> February 8, 2013 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="16">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="14">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="79"> 25,600 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="17">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="94"> 640,000 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="13">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="13">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="82"> 19,824 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="17">   </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="130"> March 12, 2013 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="16">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="14">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="79"> 28,000 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="17">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="94"> 700,000 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="13">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="13">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="82"> 21,029 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="17">   </td> </tr> <tr> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="130"> March 21, 2013 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="16">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="14">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="79"> 28,000 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="17">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="94"> 700,000 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="13">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="13">   </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="82"> 20,567 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="17">   </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="130"> April 24, 2013 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="16">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="14">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="79"> 17,000 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="17">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="94"> 425,000 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="13">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="13">   </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="82"> 10,360 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="17">   </td> </tr> <tr> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="130"> May 3, 2013 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="16">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="14">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="79"> 12,093 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="17">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="94"> 302,315 </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="13">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="13">   </td> <td style="BORDER-BOTTOM: #000000 1px solid; MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="82"> - </td> <td style="MARGIN-TOP: 0px; BACKGROUND-COLOR: #ccecff" valign="bottom" width="17">   </td> </tr> <tr> <td style="MARGIN-TOP: 0px" valign="bottom" width="130"> Total </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="16">   </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="14"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="79"> 144,693 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="17">   </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="94"> 3,617,315 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="13">   </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="13"> $ </td> <td style="BORDER-BOTTOM: #000000 3px double; MARGIN-TOP: 0px" valign="bottom" width="82"> 99,585 </td> <td style="MARGIN-TOP: 0px" valign="bottom" width="17">   </td> </tr> </table> As of June 30, 2013, the balance of the note dated January 31, 2012 was $-. On February 28, 2013, the Company signed a Convertible Promissory Note which refinanced non-interest bearing advances in the amount of $329,050 into a convertible note payable. The Convertible Promissory Note bears interest at 10% per annum and is payable along with accrued interest on February 28, 2015. The Convertible Promissory Note is convertible into common stock at the option of the holder at the rate of $0.04 per share. On June 30, 2013, the Company signed a Convertible Promissory Note which refinanced non-interest bearing advances in the amount of $190,565 into a convertible note payable. The Convertible Promissory Note bears interest at 10% per annum and is payable along with accrued interest on June 30, 2015. The Convertible Promissory Note is convertible into common stock at the option of the holder at the rate of $0.04 per share. The Company evaluated the terms of these notes in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entity's Own Stock and determined that the underlying common stock is indexed to the Company's common stock. The Company determined that the conversion feature did not meet the definition of a liability and therefore did not bifurcate the conversion feature and account for it as a separate derivative liability. The Company evaluated the conversion feature for a beneficial conversion feature. The effective conversion price was compared to the market price on the date of the notes and was deemed to be less than the market value of underlying common stock at the inception of the notes. Therefore, the Company recognized a beneficial conversion features in the amount of $329,050 on February 28, 2013 and $190,565 on June 30, 2013. The beneficial conversion feature was recognized as an increase in additional paid-in capital and a discount to the Convertible Notes Payable. The discount to the Convertible Notes Payable is being amortized to interest expense over the life of the notes. The Company evaluated the application of ASC 470-50-40/55, Debtor's Accounting for a Modification or Exchange of Debt Instrument as it applies to the three notes listed above and concluded that the revised terms constituted a debt modification rather than a debt extinguishment because the present value of the cash flow under the terms of each of the new instruments was less than 10% from the present value of the remaining cash flows under the terms of the original notes. No gain or loss on the modifications was required to be recognized. </div> </div>falsefalsefalsenonnum:textBlockItemTypenaThe 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.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 false0CONVERTIBLE NOTES PAYABLEfalseCONVERTIBLE NOTES PAYABLEUnKnownUnKnownUnKnownUnKnowntruefalsefalseNoteshttp://www.first-titan.com/role/ConvertibleNotesPayable12