Convertible Notes Payable

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Convertible Note Payable

7. Convertible Notes Payable

At March 31, 2016 and December 31, 2015, convertible notes payable consisted of three separate notes:

	2016		2015
Convertible note bearing interest at 5% per annum. The original maturity date of June 13, 2015 was extended to April 1, 2016 during the period ended December 31, 2015 and was further extended to May 31, 2016 on April 1, 2016. The note may be converted into shares of the Company's common stock at a fixed conversion price of $0.40 per share.	$	150,000	$	150,000
Secured Convertible promissory note, bearing interest at 14% per annum in the principal amount of $275,000 (the “Note”), payable in six installments (“Amortization Payments”) as set forth in an Amortization Schedule beginning the 30th day after issuance and each 30-days thereafter. The Note is convertible at a price per share equal to the lesser of (i) the Fixed Conversion Price (currently $0.15) or (ii) 65% of the lowest trading price of the Company’s common stock during the 5 trading days prior to conversion. The note was issued with an original issue discount, which is amortized over the life of the loan. The Note is secured by all of the Company’s assets pursuant to the terms and conditions of an Amended and Restated Pledge and Security Agreement. This note was exchanged for a new note on May 13, 2016 (see Note 16—Subsequent Events)		272,708		272,708
Convertible note bearing interest at 0% per annum. The note was converted into Company's preferred equity financing on April 4, 2016.		50,000		50,000
Totals		472,708		472,708
Less: discount on convertible debt		5,583		16,750
Current Convertible Notes Payable – net of debt discounts		467,125		455,958

Amortization of the debt discount and beneficial conversion feature totaled $159,244 for the period ended March 31, 2016 and $0 for March 31, 2015 and was recorded as other expense in the consolidated statement of operations.

Maturities on notes payable as of March 31, 2016, are as follows:

Year ending December 31:
2016	$	476,912
2017		4,271
2018		4,625
2019		5,008
2020		4,264
Thereafter		500
	$	493,362