NOTE 9 - STOCKHOLDER'S EQUITY

9 Months Ended

Sep. 30, 2015

Note 9 - Stockholders Equity

NOTE 9 - STOCKHOLDER'S EQUITY

NOTE 9 – STOCKHOLDER’S EQUITY

Discount related to issuance of debt with warrants and allocated fair value to beneficial conversion feature

During the nine months ended September 30, 2015, the Company raised gross proceeds of $402,000 pursuant to the issuance of an Unsecured Redeemable Debenture Series F (the “Series F Debentures”) with detachable stock warrants. The Company allocated the value of the Series F Debentures and the warrants based on their relative fair values, which resulted in a discount to the carrying value of the Series F Debentures. As a result of the allocation a beneficial conversion feature was created totaling $274,122, which was recorded as a discount against the Series F Debentures, with an offsetting entry to additional paid-in-capital. The discounts are being amortized into interest expense over the term of the Series F Debentures.