Note 6. Convertible Notes Payable

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

Note 6. Convertible Notes Payable

Convertible notes payable consisted of the following at March 31, 2016 and December 31, 2015:

	March 31, 2016			December 31, 2015
Convertible note dated April 1, 2010, bearing interest at 10% per annum, matured on March 31, 2013 and convertible into shares of common stock at $0.01 per share. This note is in default.	$	14,491		$	14,138
Convertible note dated May 15, 2010, bearing interest at 10% per annum, matured on March 31, 2013 and convertible into shares of common stock at $0.01 per share. This note is in default.		7,429			7,249
Convertible note dated October 31, 2012, bearing interest at 10% per annum, matures on April 30, 2014 and convertible into shares of common stock at $0.02 per share. This note is in default.		64			64
Convertible note dated April 1, 2013, bearing interest at 10% per annum, matures on March 31, 2015 and convertible into shares of common stock at $0.01 per share. This note is in default.		1,147			1,147
Convertible note dated June 30, 2013, bearing interest at 10% per annum, matures on June 30, 2015 and convertible into shares of common stock at $0.01 per share.		60,242			69,068
Convertible note dated September 30, 2013, bearing interest at 10% per annum, matures on September 30, 2015 and convertible into shares of common stock at $0.01 per share.		312,310			312,310
Convertible note dated June 30, 2014, bearing interest at 10% per annum, matures on June 30, 2014 and convertible into shares of common stock at $0.01 per share.		162,946			162,946
Convertible note dated December 31, 2014, bearing interest at 10% per annum, matures on December 31, 2016 and convertible into shares of common stock at $2.00 per share.		202,160			202,160
Convertible note dated March 31, 2015, bearing interest at 10% per annum, maturing on March 31, 2017, and convertible into shares of common stock at $1.10 per share.		87,970			87,970
Convertible note dated June 30, 2015, bearing interest at 10% per annum, maturing on June 30, 2017, and convertible into shares of common stock at $0.15 per share.		81,813			81,813
Convertible note dated September 30, 2015, bearing interest at 10% per annum, maturing on September 30, 2018, and convertible into shares of common stock at $0.06 per share.		326,402			326,402
Convertible note dated December 31, 2015, bearing interest at 10% per annum, maturing on December 31, 2018, and convertible into shares of common stock at $0.01 per share.		103,595			103,595
Convertible note dated March 31, 2016, bearing interest at 10% per annum, maturing on March 31, 2019 and convertible into share of common stock at a 60% discount of the volume weighted average market price.		63,365			—
Total convertible notes payable	$	1,423,933		$	1,368,861
Less: current portion of convertible notes payable		(848,758	)		(769,081	)
Less: discount on noncurrent convertible notes payable		(549,173	)		(578,194	)
Convertible notes payable, net of discount	$	26,002		$	21,586
Current portion of convertible notes payable		848,758			769,081
Less: discount on current portion of convertible notes payable		(310,613	)		(286,267	)
Current portion of convertible notes payable, net of discount	$	538,145		$	482,814

All principal along with accrued interest is payable on the maturity date. The notes are convertible into common stock at the option of the holder. The holder of the notes cannot convert the notes into shares of common stock if that conversion would result in the holder owning more than 4.9% of the outstanding stock of the Company.

Advances Refinanced into Convertible Promissory Notes

During the three months ended March 31, 2016, the Company has signed Convertible Promissory Notes that refinance non-interest bearing advances into convertible notes payable. The Convertible Promissory Notes bear interest at 10% per annum and are payable along with accrued interest. The Convertible Promissory Note and unpaid accrued interest are convertible into common stock at the option of the holder.

Date Issued	Maturity Date	Interest Rate			Conversion Rate	Amount of Note
March 31, 2016	March 31, 2019		10	%	40% of market	$	63,365
						$	63,365

Conversions to Common Stock

During three months ended March 31, 2016, the holders of the Convertible Note Payable dated June 30, 2013 elected to convert principal and accrued interest in the amounts show below into share of common stock at a rate of $0.01 per share. On the conversion date, the unamortized discount related to the principal amount converted was immediately amortized to interest expense. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement that provided for conversion.

Date	Amount Converted		Number of Shares Issued		Discount Amortized
January 7, 2016	$	2,460		246,000	$	—
January 8, 2016		6,687		668,700		—
Total	$	9,147		914,700	$	—