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8. Convertible notes payable

3 Months Ended

Mar. 31, 2014

Summary of Investments, Other than Investments in Related Parties [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				90,470			April 18, 2012		$	0.45				201,044				0.42	%		April 18, 2014
	2				48,530			May 31, 2012		$	1.00				48,530				0.10	%		May 31, 2014
				$	139,000										249,574

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

During the three month period ended March 31, 2014, the Company issued 523,298 common shares from convertible notes payable at an average conversion rate of $0.20 per share.

On March 31, 2014 convertible debentures totaling $107,500 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 March 31, 2014, the financial information presented in these consolidated interim financial statements has treated the debt of $107,500 as matured and converted into restricted shares totaling 523,298.

The entire disclosure for the schedule applicable to insurance companies summarizing investments held as of the most recent audited balance sheet. At a minimum, such summary is by three major categories of investments including: (1) fixed maturities primarily consisting of bonds, including convertibles and bonds with warrants, and redeemable preferred stocks, (2) equity securities primarily consisting of common stocks and nonredeemable preferred stocks, and (3) other investments including mortgage loans on real estate, real estate held for investment, real estate acquired in satisfaction of debt, policy loans, other long-term investments, and short-term investments not otherwise categorized. The information provided with respect to each item within each category includes: (A) the original cost of equity securities and, as to fixed maturity securities, original cost reduced by repayments and adjusted for amortization of premiums or accrual of discounts, (B) fair value as of the reporting date, and (C) the amount at which the item within each category is shown in the statement of financial position; with respect to (C), if the amount at which shown in the statement of financial position is different from the items original [amortized] cost or fair value, an explanation of the difference may be included herein.

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