Short-Term and Long-Term Debt

3 Months Ended

Mar. 31, 2016

Short-Term and Long-Term Debt [Abstract]

SHORT-TERM AND LONG-TERM DEBT

NOTE 3 – SHORT-TERM AND LONG-TERM DEBT

The following table shows the Company’s short-term and long-term debt at March 31, 2016 and December 31, 2015.

Gross

	March 31,			December 31,
	2016			2015
Short term debt:
Loans payable – third party	$	163,000		$	163,000
Long term debt:
Loans payable – related party
	1,250,000			1,250,000
Accrued Interest		55,566			24,316
Unamortized discount		(672,082	)		(687,754	)
Net loans payable – related party	$	633,484		$	586,562

Short term debt

The loan payable – third party is a demand loan made by former officers and directors, who are unrelated third parties at March 31, 2016, and December 31, 2015, in the amount of $163,000. The loans are payable on demand plus accrued interest at 10% per annum. These third parties are also shareholders, but their stockholdings are not significant.

Long-term debt

The loan payable at March 31, 2016 represents the principal amount of the Company’s 10% note to United Wireless Holdings, Inc. (“United Wireless”) due September 30, 2020, in the amount of $1,250,000 pursuant to securities purchase agreement dated October 22, 2015 more fully described in our Annual Report on Form 10-K for the year ended December 31, 2015. Because of its stock ownership in the Company and its right to elect a director of the Company, United Wireless is treated as a related party. Prior to the consummation of the transactions described in this Note 3, the Company had no relationship with United Wireless.