Note 5 - Convertible Notes Payable

9 Months Ended

Sep. 30, 2015

Notes

Note 5 - Convertible Notes Payable

Note 5 – Convertible Notes Payable

At September 30, 2015, convertible notes payable consisted of the following:

		September 30,
		2015
Note payable to stockholder and former officer; interest at 10% for each six-month period; due on November 24, 2015; unsecured; convertible into shares of common stock at $0.10 per shares at option of note holder	$	57,300
Note payable to individual; interest at 10% for each six-month period; due on November 4, 2015; unsecured; convertible into shares of common stock at $0.10 per shares at option of note holder		2,000
Note payable to officer; interest at 10% for each six-month period; due on March 15, 2016; unsecured; convertible into shares of common stock at $0.10 per shares at option of note holder		25,000
Total convertible notes payable		84,300
Debt discount		(40,740)
	$	43,560

All of the above convertible notes payable contain a provision allows the note holder to convert the outstanding balance into shares of the Company’s common stock at $0.10 per shares.  The Company determined that the convertible notes payable contained a beneficial conversion feature which is limited to the face amount of the note.  This beneficial conversion feature has been recorded in the financial statements to additional paid-in capital and as a discount to the convertible notes payable. The debt discount is being amortized over the remaining term of the note.  The Company recognized interest expense of $43,560 during the nine months ended September 30, 2015 related to the amortization of the debt discount.