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Notes Payable - Related Parties
6 Months Ended
Jun. 30, 2017
Debt Disclosure [Abstract]  
Notes Payable – Related Parties

Note 4. Notes Payable – Related Parties

During July 2016 through October 2016, the Company obtained three short-term loans from the Investors in the aggregate amount of $150,000 in exchange for promissory notes bearing 10% interest per annum, and 18% interest per annum after December 31, 2016, which principal shall be due and payable, upon demand of the payee, at any time after the earlier of: (i) December 31, 2016, or (ii) upon a change in control of the Company. Notwithstanding, on or after January 16, 2017, at the holder’s sole discretion, the holder has the right to convert all or any portion of the then unpaid principal and interest balance into shares of the Company’s common stock at a conversion price of $0.08 per share. This resulted in a beneficial conversion feature in the aggregate amount of $117,500, which was treated as a discount to each of the promissory notes and amortized over the term of each respective promissory note, maturing on December 31, 2016, the date in which the beneficial conversion feature was fully amortized.

 

During the three-months ended June 30, 2017 and 2016, interest expense of $6,731 and $1,750, respectively, was recognized on outstanding notes payable – related parties and are reflected within interest expense on the accompanying condensed statements of operations.  During the six-months ended June 30, 2017 and 2016, interest expense of $13,388 and $3,500, respectively, was recognized on outstanding notes payable – related parties and are reflected within interest expense on the accompanying condensed statements of operations. As of June 30, 2017, and December 31, 2016, accrued interest payable was $18,485 and $5,096, respectively, which is included in accrued expenses on the accompanying condensed balance sheets.