8. Auto Loan payable/ Short term convertible loan

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

8. Auto Loan payable/ Short term convertible loan

8. Auto Loan payable/ Short term convertible loan

Auto loan:

The Company has an automobile loan payable bearing interest at 4.49% with blended monthly payments of $Can835 that matures March 2018. The loan is secured by the vehicle with a net book value as at March 31, 2015 of $26,989.

Short term convertible loan:

In May 2013 the company entered into a promissory note of up to $500,000 where the maturity date is one year after the lender provides the borrower with funds. A one time interest rate of 12% is applied in case of non payment within the initial 90 days.

The note is convertible at the lessor of $.30 or 70% of the lowest trading price in the 25 trading days prior to conversion. In 2014 the Company received $105,000 in proceeds and converted $127,076 into 2,245,991 shares of common stock. As of December 31, 2014 the net balance of this loan amounted to $29, 758 comprised of a principal balance of $42,466 and a net debt discount of $12,208. During the three months ended March 31, 2015 the Company made cash payments amounting to $18,686 and converted $8,117 through the issuance of 1,488,781 shares of common stock. In addition the Company recorded amortization expense of $9,609 related to the debt discount recognized in previous years. As of March 31, 2015 the net balance of this loan amounted to $12,565 comprised of a principal balance of $15,665 and an net debt discount of $3,100.

Estimated principal re-payments are as follows:

2015	$  5,537
2016	7,382

2017		7,382
Thereafter		1,846
	$	22,146