CONVERTIBLE NOTES PAYABLE | 10. CONVERTIBLE NOTES PAYABLE Convertible notes payable consists of the following: September 30, 2015 2014 Convertible note payable issued November 6, 2013 for cash of $78,500, due August 8, 2014, original issue discount of 8%, unsecured. $ - $ 51,560 Convertible note payable issued November 13, 2013 for cash of $137,500, due November 13, 2015, interest at 12% per annum, unsecured. - 94,990 Convertible note payable issued January 24, 2014 for cash of 78,500, due October 28, 2014, interest at 8% per annum, unsecured. - 78,500 Convertible note payable issued April 11, 2014 for cash $103,00, due April 11, 2015, interest at 8% per annum, unsecured. - 103,000 Convertible note payable issued August 26, 2014 for cash $25,000, due August 25, 2017, interest at 12% per annum, unsecured. 25,000 25,000 Convertible note payable issued December 19, 2014 for cash of $26,000, due December 19, 2015, interest at 8% per annum, unsecured. 1,000 - Convertible note payable issued February 5, 2015 for cash of $100,000, due February 5, 2016, interest at 8% per annum, unsecured. 25,990 - Convertible note payable issued February 17, 2015 for cash of $35,000, due February 17, 2016, interest at 8% per annum, unsecured. 35,000 - Convertible note payable issued March 9, 2015 for cash of $50,000, due March 9, 2016, interest at 8% per annum, unsecured. 50,000 - Convertible note payable issued March 10, 2015 for cash of $75,000, due March 10, 2016, interest at 8% per annum, unsecured. 75,000 - Convertible note payable issued March 12, 2015 for cash of $75,000, due March 12, 2016, interest at 8% per annum, unsecured. 71,000 - Convertible note payable issued March 24, 2015 for cash of $116,678, due March 24, 2016, interest at 8% per annum, unsecured. 111,678 - Convertible note payable issued March 24, 2015 for cash of $50,000, due March 24, 2016, interest at 8% per annum, unsecured. 50,000 - Convertible note payable issued March 27, 2015 for cash of $53,000, due December 27, 2015 interest at 12% per annum, unsecured. 53,000 - Convertible note payable issued April 9, 2015 for cash of $38,000, due January 14, 2016 interest at 8% per annum, unsecured. 38,000 - Convertible note payable issued April 13, 2015 for cash of $75,000, due April 13, 2016 interest at 8% per annum, unsecured. 75,000 - Convertible note payable issued April 27, 2015 for cash of $50,000, due April 27, 2016 interest at 8% per annum, unsecured. 50,000 - Convertible note payable issued May 7, 2015 for cash of $55,000, due May 7, 2016 interest at 8% per annum, unsecured. 55,000 - Convertible note payable issued May 11, 2015 for cash of $50,000, due November 11, 2015 interest at 10% per annum, unsecured. 50,000 - Convertible note payable issued May 20, 2015 for cash of $50,000, due May 20, 2016 interest at 8% per annum, unsecured. 50,000 - Convertible note payable issued June 24, 2015 for cash of $30,000, due December 24, 2015 interest at 12% per annum, unsecured. 30,000 - Convertible note payable issued July 8, 2015 for cash of $38,000, due April 10, 2016 interest at 8% per annum, unsecured. 38,000 - Convertible note payable issued August 11, 2015 for cash of $66,500, due May 11, 2016 interest at 8% per annum, unsecured. 66,500 - Convertible note payable issued August 13, 2015 for cash of $40,517, due August 13, 2016 interest at 8% per annum, unsecured. 11,801 - Convertible note payable issued August 13, 2015 for cash of $28,276, due August 13, 2016 interest at 8% per annum, unsecured. 28,276 - Convertible note payable issued August 19, 2015 for cash of $29,000, due August 19, 2016 interest at 8% per annum, unsecured. 29,000 - Convertible note payable issued August 19, 2015 for cash of $23,689, due August 19, 2016 interest at 8% per annum, unsecured. 10,358 - Convertible note payable issued August 19, 2015 for cash of $20,200, due April 27, 2016 interest at 8% per annum, unsecured. 4,700 - Convertible note payable issued August 27, 2015 for cash of $25,000, due December 24, 2015 interest at 12% per annum, unsecured. 25,000 - Convertible note payable issued August 27, 2015 for cash of $27,500, due April 27, 2016 interest at 10% per annum, unsecured. 27,500 - Convertible note payable issued September 1, 2015 for cash of $28,000, due on demand, interest at 8% per annum, unsecured. 28,000 - Total 1,114,803 353, 050 Less current portion (1,114,803 ) (328,050 ) Long-term convertible notes payable $ - $ 25,000 Maturities under the obligations described above are as follows at September 30, 2015: 2016 $ 1,114,803 Total $ 1,114,803 On August 26, 2014, the Company entered into a $25,000 convertible debenture note agreement with an unrelated third party. The note accrues interest at a rate of 12% per annum and is due on August 25, 2017. Pursuant to the terms of the note, the principal can be converted into shares of the Company’s common stock, at the option of the lender, at any time after six months and up to one year from the note date at a 20% discount to the market price of the shares. The discount will be 25% if converted between one and two years and will be 30% if converted after two years. The maximum conversion price will be $0.50 per share. As of September 30, 2015 and 2014, the balance on the note was $25,000. On December 22, 2014, the Company entered into a Convertible Redeemable Note Agreement for $50,000, which accrues interest at a rate of eight % per annum and is due on December 22, 2015. The note is convertible at the option of the lender at any time after 6 months from the date of the agreement. The note shall immediately convert upon the earlier of (a) a reverse split being effective or (b) an increase in authorized shares, at the lower of 70% of the thirty-day volume weighted average trading price of the Company’s common stock, or $0.0003 per share on a pre-reverse split basis. On February 14, 2015, the Company and lender negotiated an early settlement of the conversion terms and converted $50,000 of the note principal into 1,550,000 shares of the Company’s common stock. The Company recognized a loss on settlement of debt of $21,300 as a result of the market price on date of settlement of $0.046 per share, or $71,300, being greater than the debt settled. On February 10, 2015, the Company assumed a convertible redeemable note owed by Medient Studios, Inc. associated with a capital lease. Pursuant to the terms of the convertible redeemable note, the Company borrowed $90,000 from the lender, which accrues interest at a rate of 8% per annum and is due on September 5, 2015. The note is convertible after 30 days at the lower of the 30 day volume weighted average price or $0.000175. On February 14, 2015, the Company and lender negotiated an early settlement of the conversion terms and converted $90,000 of the note principal into 2,250,000 shares of the Company’s common stock. The Company evaluated the note for debt extinguishment, concluding it does not qualify as it is considered to be a derivative under ASC 815-15. On November 6, 2013, the Company issued a convertible note payable in the amount of $128,500. The convertible note payable bears interest at a rate of 8% per annum, is due in full on or before August 8, 2014 and is convertible at the option after 180 days from the note date at a 42% discount to the average of the three lowest closing prices out of the prior ten trading day period prior to conversion. During the years ended September 30, 2015 and 2014, the holder converted $51,560 and $76,940 of the principal into common stock. On November 13, 2013, the Company issued a convertible note payable in the amount of $137,500. The convertible note payable accrued interest after 90 days at a rate of 12% per annum, is convertible into shares of the Company’s common stock at 60% of the lowest trade price in the 25 trading days previous to the conversion. The Company analyzed the conversion option for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that the derivative instrument should be classified as a liability once the conversion option becomes effective due to there being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options. All borrowings under the terms of this note are subject to a 10% original issue discount such that the consideration due back to the lender is equal to cash proceeds actually received plus ten percent of the amount borrowed. Therefore Company recorded a debt discount of $12,500 on the convertible note payable. During the year ended September 30, 2014, the lender converted $42,510 of the note principal into 24,250 shares of the Company’s common stock. During the year ended September 30, 2015, the lender converted the remaining $94,990 of note principal and accrued interest into 5,421,419 shares of the Company’s common stock. On January 24, 2014, the Company issued a convertible note payable in the amount of $78,500. The convertible note payable accrued interest at 8% per annum, is due October 28, 2014 and is convertible at the option of the holder after 180 days from the note date at a 42% discount to the average of the three lowest closing prices out of the prior ten trading day period prior to conversion. During the year ended September 30, 2015, the holder converted $67,066 in note principal into 854,563 shares of common stock and the remaining balance of $11,434 along with interest of $2,090 was recognized as a gain on forgiveness of debt. On April 11, 2014, the Company issued a convertible note payable in the amount of $103,000. The convertible note payable accrued interest at 8% per annum, is due April 11, 2015 and is convertible at the option of the holder at any time at a 40% discount to the average of the three lowest closing prices out of the prior ten trading day period prior to conversion. During the years ended September 30, 2015 and 2014, the lender converted $103,000 and $0 in note principal into 1,909,020 and 0 shares of common stock, respectively. On December 19, 2014, the Company issued a convertible note payable in the amount of $26,000. The convertible note payable accrues interest at 8% per annum, is due December 19, 2015 and is convertible beginning February 5, 2015 at the option of the holder at any time at a 45% discount to the lowest closing bid price out of the prior ten trading day period prior to conversion. During the year ended September 30, 2015, the lender converted $25,000 in note principal and $1,095 in accrued interest into 6,826,768 shares of the Company’s common stock. As of September 30, 2015 the remaining principal balance on this note was $1,000. On December 31, 2014, the Company issued a convertible note payable in the amount of $20,000. The convertible note payable accrued interest at 8% per annum, is due December 31, 2015 and is convertible after 6 months at the option of the holder at a conversion price of $0.0001 per share. The note shall immediately convert upon the earlier of (a) a reverse split being effective or (b) an increase in authorized shares. Prior to six months from the date of the agreement, the Company had a reverse split which caused the note to become convertible. During the year ended September 30, 2015, the lender converted all of the $20,000 in note principal into 500,000 shares of the Company’s common stock. On February 5, 2015, the Company issued a convertible note payable in the amount of $100,000. The convertible note payable accrues interest at 8% per annum, is due February 5, 2016 and is convertible at the option of the holder at any time at a 45% discount to the lowest closing bid price out of the prior 20 trading day period prior to conversion. During the year ended September 30, 2015, the lender converted $74,010 in note principal into 43,049,128 shares of the Company’s common stock. As of September 30, 2015 the remaining principal balance on this note was $25,990. On February 5, 2015, the Company assumed a convertible note payable of Medient Studios, Inc. in respect of the distribution agreement for the movie Yellow On February 6, 2015, the Company issued a convertible note payable in the amount of $25,000 that was used to settle the Olweean demand note (see below). The convertible note payable accrued interest at 8% per annum, is due February 6, 2016 and is convertible at the option of the holder at any time at the lower of $0.0015 per share or 50% of the lowest closing price for the ten prior trading days. During the year ended September 30, 2015, the lender converted all $25,000 in note principal into 1,618,559 shares of the Company’s common stock. On February 17, 2015, the Company issued a convertible note payable in the amount of $35,000. The convertible note payable accrues interest at 8% per annum, is due February 17, 2016 and is convertible at the option of the holder at any time at a 40% discount to the lowest closing bid price out of the prior 5 trading day period prior to conversion. As of September 30, 2015 the remaining principal balance on this note was $35,000. On March 9, 2015, the Company assumed a convertible note payable of Medient Studios, Inc. in respect of the distribution agreement for the movie Yellow On March 9, 2015, the Company issued a convertible note payable in the amount of $50,000. The convertible note payable accrued interest at 8% per annum, is due March 9, 2016 and is convertible at the option of the holder at any time at a 39% discount to the lowest closing bid price out of the prior 5 trading day period prior to conversion. As of September 30, 2015 the remaining principal balance on this note was $50,000. On February 19, 2015, the Company issued a convertible note payable in the amount of $43,000. The convertible note payable accrued interest at 8% per annum, is due March 9, 2016 and is convertible after 180 days at the option of the holder at a 50% discount to the average of the lowest three closing bid prices out of the prior 30 trading day period prior to conversion. During the year ended September 30, 2015, the lender converted all $43,000 in note principal and $1,720 in accrued interest into 12,519,035 shares of the Company’s common stock. On March 10, 2015, the Company issued a convertible note payable in the amount of $75,000. The convertible note payable accrued interest at 8% per annum, is due March 10, 2016 and is convertible at the option of the holder at any time at a 45% discount to the lowest closing bid price out of the prior 20 trading day period prior to conversion. As of September 30, 2015 the remaining principal balance on this note was $75,000. On March 12, 2015, the Company issued a convertible note payable in the amount of $75,000. The convertible note payable accrues interest at 8% per annum, is due March 12, 2016 and is convertible at the option of the holder at any time at a 39% discount to the lowest closing bid price out of the prior 15 trading day period prior to conversion. During the year ended September 30, 2015, the lender converted $4,000 in note principal and $164 in accrued interest into 4,875,819 shares of the Company’s common stock. As of September 30, 2015 the remaining principal balance on this note was $71,000. On March 24, 2015, the Company assumed a convertible note payable of Medient Studios, Inc. in respect of the distribution agreement for the movie Yellow On March 24, 2015, the Company issued a convertible note payable in the amount of $50,000. The convertible note payable accrues interest at 8% per annum, is due March 24, 2016 and is convertible at the option of the holder at any time at a 39% discount to the lowest closing bid price out of the prior 15 trading day period prior to conversion. As of September 30, 2015 the remaining principal balance on this note was $50,000. On March 27, 2015, the Company issued a convertible note payable in the amount of $53,000 with $3,000 recorded as original issuance discount. The convertible note payable accrues interest at 12% per annum, is due December 27, 2015 and is convertible 90 days after the date of issuance at the option of the holder at a 40% discount to the average of the three lowest closing bid prices out of the prior 10 trading day period prior to conversion. As of September 30, 2015 the remaining principal balance on this note was $53,000. On April 9, 2015, the Company issued a convertible note payable in the amount of $38,000. The convertible note payable accrued interest at 8% per annum, is due January 14, 2016 and is convertible after 180 days at the option of the holder at a 40% discount to the average of the lowest three closing bid prices out of the prior 30 trading day period prior to conversion. As of September 30, 2015 the remaining principal balance on this note was $38,000. On April 13, 2015, the Company issued a convertible note payable in the amount of $75,000. The convertible note payable accrues interest at 8% per annum, is due April 13, 2016 and is convertible at the option of the holder at any time at a 45% discount to the lowest closing bid price out of the prior 20 trading day period prior to conversion. As of September 30, 2015 the remaining principal balance on this note was $75,000. On April 27, 2015, the Company issued a convertible note payable in the amount of $50,000. The convertible note payable accrues interest at 8% per annum, is due April 27, 2016 and is convertible at the option of the holder at any time at a 45% discount to the lowest closing bid price out of the prior 20 trading day period prior to conversion. As of September 30, 2015 the remaining principal balance on this note was $50,000. On May 7, 2015, the Company issued a convertible note payable in the amount of $55,000. The convertible note payable accrues interest at 8% per annum, is due May 7, 2016 and is convertible at the option of the holder after 6 months at a 40% discount to the lowest closing bid price out of the prior 5 trading day period prior to conversion. As of September 30, 2015 the remaining principal balance on this note was $55,000. On May 11, 2015, the Company issued a convertible note payable in the amount of $50,000. The convertible note payable accrues interest at 8% per annum, is due November 11, 2015 and is convertible after maturity at the option of the holder at a 38% discount to the average of the lowest three closing bid prices out of the prior 20 trading day period prior to conversion. As of September 30, 2015 the remaining principal balance on this note was $50,000. On May 20, 2015, the Company issued a convertible note payable in the amount of $50,000. The convertible note payable accrues interest at 8% per annum, is due May 20, 2016 and is convertible after maturity at the option of the holder at a 45% discount to the lowest closing bid price out of the prior 20 trading day period prior to conversion. As of September 30, 2015 the remaining principal balance on this note was $50,000. On June 24, 2015, the Company issued a convertible note payable in the amount of $30,000. The convertible note payable accrues interest at 12% per annum after 90 days, is due December 21, 2015 and is convertible on December 21, 2015 at the option of the holder at a 60% discount to the lowest closing bid price out of the prior 25 trading day period prior to conversion. As of September 30, 2015 the remaining principal balance on this note was $30,000. On July 8, 2015, the Company issued a convertible note payable in the amount of $38,000. The convertible note payable accrues interest at 8% per annum, is due April 10, 2016 and is convertible after 180 days at the option of the holder at a 40% discount to the average of the lowest three closing bid prices out of the prior 30 trading day period prior to conversion. As of September 30, 2015 the remaining principal balance on this note was $38,000. On August 11, 2015, the Company issued a convertible note payable in the amount of $66,500. The convertible note payable accrues interest at 8% per annum, is due May 11, 2016 and is convertible at the option of the holder at the lesser of: i) a 40 percent discount to the lowest trading price in the 15 trading days prior to the date of the note, or ii) a 40 percent discount to the lowest trading price in the 15 trading days prior to conversion notice. As of September 30, 2015 the remaining principal balance on this note was $66,500. On August 13, 2015, the Company issued a convertible note payable in the amount of $40,517. The convertible note payable accrues interest at 8% per annum, is due August 13, 2016 and is convertible at the option of the holder at a 39% discount to the lowest closing bid price out of the prior 15 trading day period prior to conversion. During the year ended September 30, 2015, the lender converted $28,716 in note principal and $119 in accrued interest into 16,282,618 shares of the Company’s common stock. As of September 30, 2015 the remaining principal balance on this note was $11,801. On August 13, 2015, the Company issued a convertible note payable in the amount of $28,276. The convertible note payable accrues interest at 8% per annum, is due August 13, 2016 and is convertible at the option of the holder at a 39% discount to the lowest closing bid price out of the prior 15 trading day period prior to conversion. As of September 30, 2015 the remaining principal balance on this note was $28,276. On August 19, 2015, the Company issued a convertible note payable in the amount of $29,000. The convertible note payable accrues interest at 8% per annum, is due August 19, 2016 and is convertible at the option of the holder at a 39% discount to the lowest closing bid price out of the prior 15 trading day period prior to conversion. As of September 30, 2015 the remaining principal balance on this note was $29,000. On August 19, 2015, the Company issued a convertible note payable in the amount of $23,689. The convertible note payable accrues interest at 8% per annum, is due August 19, 2016 and is convertible at the option of the holder at a 40% discount to the lowest closing bid price out of the prior 5 trading day period prior to conversion. During the year ended September 30, 2015, the lender converted $13,331 in note principal into 19,233,124 shares of the Company’s common stock. As of September 30, 2015 the remaining principal balance on this note was $10,358. On August 19, 2015, the Company issued a convertible note payable in the amount of $20,200. The convertible note payable accrues interest at 8% per annum, is due April 27, 2016 and is convertible at the option of the holder at a 40% discount to the lowest closing bid price out of the prior 5 trading day period prior to conversion. During the year ended September 30, 2015, the lender converted $15,500 in note principal into 13,366,666 shares of the Company’s common stock. As of September 30, 2015 the remaining principal balance on this note was $4,700. On August 27, 2015, the Company issued a convertible note payable in the amount of $25,000. The convertible note payable accrues interest at 12% per annum after 90 days, is due December 21, 2015 and is convertible on December 21, 2015 at the option of the holder at a 60% discount to the lowest closing bid price out of the prior 25 trading day period prior to conversion. As of September 30, 2015 the remaining principal balance on this note was $25,000. On August 27, 2015, the Company issued a convertible note payable in the amount of $27,500. The convertible note payable accrues interest at 10% per annum after 90 days, is due April 27, 2016 and the note is convertible immediately 90 days after issuance date at i) a 50 percent discount to the lowest sale price in the 20 trading days prior to the price at issuance date or ii) a 50 percent discount to the lowest sale price in the 20 trading days prior to conversion notice. The method of calculation shall be chosen at the sole discretion of the note holder. As of September 30, 2015 the remaining principal balance on this note was $27,500. On September 1, 2015, the Company issued a convertible note payable in the amount of $28,000. The convertible note payable accrues interest at 8% per annum, is due June 4, 2016 and is convertible after 180 days at the option of the holder at a 42% discount to the average of the three lowest closing bid prices out of the prior 30 trading day period prior to conversion. As of September 30, 2015 the remaining principal balance on this note was $28,000. The Company analyzed the conversion options in the above mentioned convertible notes payable for derivative accounting consideration under ASC 815 and determined that the derivative instrument should be classified as a liability when the conversion option became effective after the note date due to there being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options (see Note 7). During the years ended September 30, 2015 and 2014, the Company recorded $1,670,740 along with $5,999 related to the warrant and $485,795 in new debt discounts on convertible notes payable and amortized a total $1,350,724 and $416,126 to interest expense, respectively. Total debt discounts are $463,248 and $132,730 as of September 30, 2015 and 2014, respectively. |