8. Convertible notes payable

12 Months Ended

Dec. 31, 2013

Payables and Accruals [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.

Amount		Issuance Date	Conversion Price in USD		Number of Shares		Effect on Dilution			Maturity Date
	50,000	January 15, 2012	$	0.20		250,000		0.63	%	January 15, 2014
	9,402	January 24, 2012	$	0.20		47,010		0.12	%	January 24, 2014
	7,052	January 26, 2012	$	0.20		36,398		0.09	%	January 26, 2014
	28,206	January 31, 2012	$	0.20		141,030		0.36	%	January 31, 2014
	9,402	February 10, 2012	$	0.20		47,010		0.12	%	February 10, 2014
	94,020	April 18, 2012	$	0.45		215,689		0.53	%	April 18, 2014
	48,530	May 31, 2012	$	1.00		48,530		0.12	%	May 31, 2014
$	246,612					785,667

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

During the year ended December 31, 2013, the Company issued 12,331,285 common shares from convertible notes payable at an average conversion rate of $0.12 per share.

On December 31, 2013 convertible debentures totaling $ 381,260 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 ccurately reflect the maturity of the debt and conversion to shares as of December 31, 2013, the financial information presented in these consolidated interim financial statements has treated the debt of $381,260 as matured and converted into restricted shares totaling 3,206,286.