8. Convertible notes payable

9 Months Ended

Sep. 30, 2013

Debt Disclosure [Abstract]

8. Convertible notes payable

8. Convertible notes payable

The notes are convertible at the option of the holder up to the maturity date; any convertible debentures still outstanding as at their maturity date will automatically convert into common shares of the Company. Accordingly, these convertible notes payable are considered current liabilities by nature. The Company has adequate common shares in its treasury to cover the conversions if all notes are exercised.

The Company has the following convertible notes outstanding.

Note	Amount	Issuance Date	Conversion Price in USD		Number of Shares	Effect on Dilution	Maturity Date
1	48,530	October 26, 2011	$0.10		485,300	1.36%	October 26, 2013
2	97,060	October 31, 2011	$0.15		647,067	1.82%	October 31, 2013
3	67,942	November 24, 2011	$0.15		452,947	1.27%	November 24, 2013
4	14,559	November 30, 2011	$0.15		97,060	0.27%	November 30, 2013
5	14,559	November 30, 2011	$0.15		97,060	0.27%	November 30, 2013
6	22,906	November 30, 2011	$0.15		152,708	0.43%	November 30, 2013
7	25,160	December 31, 2011	$0.15		167,733	0.47%	December 31, 2013
8	19,412	December 31, 2011	$0.15		129,413	0.36%	December 31, 2013
9	9,706	December 31, 2011	$0.15		64,707	0.18%	December 31, 2013
10	21,839	December 31, 2011	$0.15		145,590	0.41%	December 31, 2013
11	43,677	December 31, 2011	$0.15		291,180	0.82%	December 31, 2013
12	48,530	December 31, 2011	$0.15		323,533	0.91%	December 31, 2013
13	19,412	December 31, 2011	$0.15		129,413	0.36%	December 31, 2013
14	14,559	December 31, 2011	$0.15		97,060	0.27%	December 31, 2013
15	50,000	January 15, 2012	$0.20		250,000	0.70%	January 15, 2014
16	9,706	January 24, 2012	$0.20		48,530	0.14%	January 24, 2014
17	7,280	January 26, 2012	$0.20		36,398	0.10%	January 26, 2014
18	29,118	January 31, 2012	$0.20		145,590	0.41%	January 31, 2014
19	9,706	February 10, 2012	$0.20		48,530	0.14%	February 10, 2014
20	97,060	April 18, 2012	$0.45		215,689	0.61%	April 18, 2014
21	48,530	May 31, 2012	$1.00		48,530	0.14%	May 31, 2014
	$719,250			4,074,037

*The actual number of shares issued if converted will vary depending on the exchange rate at time of conversion.

During the nine month period ended September 30, 2013, the Company issued 8,325,018 common shares from convertible notes payable at an average conversion rate of $0.12 per share.

On September 30, 2013 convertible debentures totaling $45,289 had matured and were to be converted to restricted shares. This is dependent on a Directors Resolution being issued by the Company. As of the date of our report a Directors Resolution had not been formally issued. The Board of Directors has indicated that in due time they will pass the resolution. Since the convertible debentures include an automatic conversion on maturity feature, and to accurately reflect the maturity of the debt and conversion to shares as of September 30, 2013, the financial information presented in these consolidated interim financial statements has treated the debt of $45,289 as matured and converted into restricted shares totaling 301,930.