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4. CONVERSION OF DEBT TO EQUITY
9 Months Ended
Sep. 30, 2015
Conversion Of Debt To Equity  
4. CONVERSION OF DEBT TO EQUITY

On April 8, 2015, the Company entered into agreement with John L. Steffens, the Chairman of the Board of Directors, to convert $6,950,514 of principal amount of debt into 69,505,140 share of the Company’s common stock. (See Note 3)  The Company accounted for the transaction pursuant to Topic ASC 470-50, Modification and Extinguishment of Debt. Due to the fact that the transaction was with Mr. Steffens, the Company’s Chairman of the Board, the Company determined that this was not an arm’s length agreement and as such has recorded the entire transaction through additional paid in capital.