3. Loans Payable | 9 Months Ended |
Sep. 30, 2014 |
Debt Disclosure [Abstract] | ' |
3. Loans Payable | ' |
Loans payable at September 30, 2014 and December 31, 2013 consist of the following: |
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| | September 30, | | | December 31, | |
| | 2014 | | | 2013 | |
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Unsecured $30,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and was due October 17, 2012. During the year ended December 31, 2012, $28,000 of the note balance was converted to common stock. During the year ended December 31, 2013, the remaining $2,000 of the note was converted to common stock. Accrued interest is equal to $2.905 at December 31, 2013. During the nine months ended September 30, 2014, the remaining accrued interest of $2,905 was forgiven by the lender. | | $ | – | | | $ | 2,905 | |
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On February 17, 2012, Panache Capital, LLC entered into an agreement to purchase $50,000 of the note payable to Azfar Haque. The Company exchanged the original note to Mr. Haque with a new note to Pananche which bears interest at 10% per annum and was due February 17, 2013. During the year ended December 31, 2012, $44,348 of the note was converted to common stock. Accrued interest is equal to $1,820 and $1,396 at September 30, 2014 and December 31, 2013, respectively. This note is in default at September 30, 2014. | | | 7,472 | | | | 7,048 | |
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Unsecured $70,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and due was October 24 2013. Accrued interest is equal to $22,555 and $16,244 at September 30, 2014 and December 31, 2013, respectively. This note is in default at September 30, 2014. | | | 92,555 | | | | 86,244 | |
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Unsecured $16,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and was due May 3, 2013. Accrued interest is equal to $4,760 and $3,317 at September 30, 2014 and December 31, 2013, respectively. This note is in default at September 30, 2014. | | | 20,760 | | | | 19,317 | |
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Unsecured $12,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and was due February 5, 2013. During the year ended December 31, 2013, $6,210 of the note was converted to common stock. Accrued interest is equal to $2,492 and $1,970 at September 30, 2014 and December 31, 2013. This note is in default at September 30, 2014. | | | 8,282 | | | | 7,760 | |
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Unsecured $15,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and was due March 26, 2013. Accrued interest is equal to $4,016 and $2,663 at September 30, 2014 and December 31, 2013, respectively. This note is in default at September 30, 2014. | | | 19,016 | | | | 17,663 | |
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Unsecured $40,000 convertible note payable to Southridge Partners II LP, which bears interest at 5% per annum and was due June 30, 2013. During the nine months ended September 30, 2014, the note balance and accrued interest of $1,203 was converted to common stock. Accrued interest is equal to $4,191 at December 31, 2013. | | | – | | | | 44,191 | |
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Unsecured $15,000 note payable to SC Advisors, Inc., which bears interest at 8% per annum and was due June 30, 2013. During the nine months ended September 30, 2014, the note was converted to common stock. Accrued interest is equal to $1,520 at December 31, 2013. | | | – | | | | 16,520 | |
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Unsecured $39,647 note payable to Azfar Hague, which bears interest at 9% per annum and was due April 25, 2013. $20,000 of this note was purchased by Tangiers Investment Group, LLC on July 26, 2013. During the nine months ended September 30, 2014, $9,000 of the note was converted to common stock. Accrued interest is equal to $4,201 and $3,379 at September 30, 2014 and December 31, 2013, respectively. This note is in default at September 30, 2014. | | | 14,848 | | | | 23,026 | |
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Unsecured $15,000 note payable to SC Advisors, Inc., which bears interest at 8% per annum and was due June 30, 2013. During the nine months ended September 30, 2014, the note was converted to common stock. Accrued interest is equal to $1,398 at December 31, 2013. | | | – | | | | 16,398 | |
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Unsecured $32,500 convertible note payable to Asher Enterprises, Inc., which bears interest at 8% per annum and was due August 13, 2013. During the year ended December 31, 2013, $3,300 of the note was converted to common stock. During the nine months ended September 30, 2014, the remaining balance of the note, including accrued interest, of $30,500 was converted to common stock. Accrued interest is equal to $2,874 at December 31, 2013. | | | – | | | | 32,074 | |
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Unsecured $9,000 convertible note payable to Star City Capital LLC, which bears interest at 12% per annum and was due December 3, 2013. During the nine months ended September 30, 2014, the note, including accrued interest, of $10,290 was converted to common stock. Accrued interest is equal to $1,179 at December 31, 2013. | | | – | | | | 10,179 | |
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Unsecured $15,000 note payable to SC Advisors, Inc., which bears interest at 8% per annum and was due June 30, 2013. During the nine months ended September 30, 2014, the note was converted to common stock. Accrued interest is equal to $1,312 at December 31, 2013. | | | – | | | | 16,312 | |
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Unsecured $25,000 convertible note payable to Southridge Partners II LP, which bears interest at 8% per annum and was due June 30, 2013. During the nine months ended September 30, 2014, the note, including accrued interest, of $27,317 was converted to common stock. Accrued interest is equal to $2,125 at December 31, 2013. | | | – | | | | 27,125 | |
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On December 12, 2012, Star City Capital LLC entered into an agreement to purchase $19,700 of a note payable to Bulldog Insurance. The note bears interest at 8% per annum and is due on demand. During the year ended December 31, 2013, $18,018 of the note, including accrued interest, was converted to common stock. During the nine months ended September 30, 2014, the remainder of the note, including accrued interest, of $2,851 was converted to common stock. | | | – | | | | 2,407 | |
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Unsecured $32,500 convertible note payable to Asher Enterprises, Inc., which bears interest at 8% per annum and was due November 1, 2013. During the nine months ended September 30, 2014, the note, including accrued interest, of $33,800 was converted to common stock. Accrued interest is equal to $2,351 at December 31, 2013. | | | – | | | | 34,851 | |
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Unsecured $35,000 convertible note payable to Lucosky Brookman LLP, which bears interest at 12% per annum and due on demand. Accrued interest is equal to $6,534 and $3,378 at September 30, 2014 and December 31, 2013, respectively. | | | 41,534 | | | | 38,378 | |
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Unsecured $43,922 convertible note payable to Lucosky Brookman LLP, which bears interest at 12% per annum and due on demand. Accrued interest is equal to $8,198 and $4,238 at September 30, 2014 and December 31, 2013, respectively. | | | 52,120 | | | | 48,160 | |
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Unsecured $32,500 convertible note payable to Asher Enterprises, Inc., which bears interest at 8% per annum and was due January 31, 2014. During the six months ended June 30, 2014, $7,988 of the note was converted to common stock. The note is discounted for its unamortized beneficial conversion feature of $3,501 at December 31, 2013. Accrued interest is equal to $3,465 and $1,752 at September 30, 2014 and December 31, 2013, respectively. This note is in default at September 30, 2014. | | | 27,977 | | | | 30,751 | |
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Unsecured $7,000 note payable to Andre Fluellen, which calls for flat interest of $1,500 at maturity and was due October 30, 2013. This note is in default at September 30, 2014. | | | 8,500 | | | | 8,500 | |
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On May 6, 2013, WHC Capital, LLC entered into an agreement to purchase $50,000 of notes payable to Bulldog Insurance. The note bears interest at 8% per annum and was due March 6, 2014. During the year ended December 31, 2013, $20,612 of the note was converted to common stock. During the nine months ended September 30, 2014, $31,494 of the note and accrued interest was converted to common stock. The note is discounted for its unamortized beneficial conversion feature of $8,748 at December 31, 2013. Accrued interest is equal to $3,297 at December 31, 2013, respectively. This note is in default at September 30, 2014. | | | – | | | | 23,937 | |
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Unsecured $20,000 convertible note payable to WHC Capital, LLC., which bears interest at 8% per annum and was due March 9, 2014. The note is discounted for its unamortized beneficial conversion feature of $3,661 at December 31, 2013. Accrued interest is equal to $2,236 and $1,034 at September 30, 2014 and December 31, 2013, respectively. This note is in default at September 30, 2014. | | | 22,236 | | | | 17,373 | |
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Unsecured $32,500 convertible note payable to Asher Enterprises, Inc., which bears interest at 8% per annum and was due March 3, 2014. During the nine months ended September 30, 2014, $7,500 of the note was converted to common stock. The note is discounted for its unamortized beneficial conversion feature of $6,316 at December 31, 2013. Accrued interest is equal to $3,258 and $1,531 at September 30, 2014 and December 31, 2013, respectively. This note is in default at September 30, 2014. | | | 28,258 | | | | 27,715 | |
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Unsecured $7,500 note payable to Andre Fluellen, which calls for flat interest of $1,400 at maturity and was due December 1, 2013. This note is in default at September 30, 2014. | | | 8,900 | | | | 8,900 | |
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Unsecured $10,000 note payable to Sammie Hill, III, which calls for flat interest of $2,000 at maturity and was due December 15, 2013. During the nine months ended September 30, 2014, the note and accrued interest was converted to common stock. | | | – | | | | 12,000 | |
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Unsecured $5,000 convertible note payable to Tangiers Investment Group, LLC., which bears interest at 10% per annum and is due June 21, 2014. The note is discounted for its unamortized beneficial conversion feature of $2,356 at December 31, 2013. During the nine months ended September 30, 2014, the note, including accrued interest, of $5,068 was converted to common stock. Accrued interest is equal to $264 at December 31, 2013. | | | – | | | | 2,908 | |
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Unsecured $12,000 note payable to Bulldog Insurance, which bears interest at 7% per annum and was due December 1, 2013. During the nine months ended September 30, 2014, the note was converted to common stock. Accrued interest is equal to $433 at December 31, 2013. | | | – | | | | 12,433 | |
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Unsecured $3,000 note payable to Andre Fluellen, which calls for flat interest of $500 at maturity and was due December 1, 2013. This note is in default at September 30, 2014. | | | 3,500 | | | | 3,500 | |
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Unsecured $3,000 note payable to Andre Fluellen, which calls for flat interest of $150 at maturity and was due February 22, 2014. Accrued interest is equal to $150 and $106 at September 30, 2014 and December 31, 2013, respectively. This note is in default at September 30, 2014. | | | 3,150 | | | | 3,106 | |
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Unsecured $14,500 convertible note payable to Asher Enterprises, Inc., which bears interest at 8% per annum and is due May 5, 2014. The note is discounted for its unamortized beneficial conversion feature of $6,202 at December 31, 2013. Accrued interest is equal to $1,328 and $457 at September 30, 2014 and December 31, 2013, respectively. This note is in default at September 30, 2014. | | | 15,828 | | | | 8,755 | |
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Unsecured $8,500 non-interest bearing note payable to Azfar Hague due February 5, 2014. During the nine months ended September 30, 2014, the note was converted to common stock. | | | – | | | | 8,500 | |
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Unsecured $10,000 non-interest bearing note payable to Azfar Hague due February 20, 2014. During the nine months ended September 30, 2014, the note was converted to common stock. | | | – | | | | 10,000 | |
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Unsecured $8,500 note payable to Bulldog Insurance, which bears interest at 5% per annum and due February 28, 2014. During the six months ended June 30, 2014, $3,000 of the note was converted to common stock. Accrued interest is equal to $368 and $142 at September 30, 2014 and December 31, 2013, respectively. This note is in default at September 30, 2014. | | | 5,868 | | | | 8,642 | |
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Unsecured $6,500 convertible note payable to Tangiers Investment Group, LLC., which bears interest at 10% per annum and was due July 25, 2014. During the nine months ended September 30, 2014, the note, including accrued interest, of $6,527 was converted to common stock. The note is discounted for its unamortized beneficial conversion feature of $3,668 at December 31, 2013. Accrued interest is equal to $283 at December 31, 2013. | | | – | | | | 3,115 | |
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On July 26, 2013, Tangiers Investment Group, LLC entered into an agreement to purchase $20,000 of notes payable to Azfar Hague. The note bears interest at 10% per annum and was due July 26, 2014. During the nine months ended September 30, 2014, the note was converted to common stock. The note is discounted for its unamortized beneficial conversion feature of $11,342 at December 31, 2013. Accrued interest is equal to $866 at December 31, 2013. | | | – | | | | 9,524 | |
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Unsecured $5,000 convertible note payable to Tangiers Investment Group, LLC., which bears interest at 10% per annum and was due August 2, 2014. During the nine months ended September 30, 2014, the note, including accrued interest, of $5,027 was converted to common stock. The note is discounted for its unamortized beneficial conversion feature of $2,931 at December 31, 2013. Accrued interest is equal to $207 at December 31, 2013. | | | – | | | | 2,276 | |
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Unsecured $5,000 convertible note payable to WHC Capital, LLC., which bears interest at 8% per annum and was due August 12, 2014. The note is discounted for its unamortized beneficial conversion feature of $3,068 at December 31, 2013. Accrued interest is equal to $456 and $155 at September 30, 2014 and December 31, 2013, respectively. This note is in default at September 30, 2014. | | | 5,456 | | | | 2,087 | |
On January 3, 2013, Black Arch Opportunity Fund LP entered into an agreement to purchase $18,737 of notes payable to Bulldog Insurance. The note bears interest at 12% per annum and is was due December 1, 2013. During the year ended December 31, 2013, $9,466 of the note, including accrued interest, was converted to common stock. During the nine months ended September 30, 2014, the remainder of the note, including accrued interest, was converted to common stock. Accrued interest is equal to $1,088 at December 31, 2013. | | | – | | | | 11,265 | |
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Unsecured $20,000 convertible note payable to CJ Mosley, which calls for flat interest of $1,800 due at maturity and was due April 28, 2014. During the nine months ended September 30, 2014, the note, including accrued interest, was converted to common stock. The note is discounted for its unamortized beneficial conversion feature of $5,650 at December 31, 2013. Accrued interest is equal to $600 at December 31, 2013. | | | – | | | | 14,950 | |
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Unsecured $7,700 convertible note payable to Andre Fluellen, which calls for flat interest of $770 due at maturity and was due June 21, 2014. Accrued interest is equal to $546 at September 30, 2014. This note is in default at September 30, 2014. | | | 8,246 | | | | – | |
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Unsecured $3,450 non-interest bearing note payable to Azfar Hague due September 20, 2014. This note is in default at September 30, 2014. | | | 3,450 | | | | – | |
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Unsecured $2,000 non-interest bearing note payable to Bulldog Insurance due September 26, 2014. This note is in default at September 30, 2014. | | | 2,000 | | | | – | |
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Unsecured $29,000 convertible note payable to LG Capital Funding, LLC., which bears interest at 8% per annum and is due March 17, 2015. The note is discounted for its unamortized beneficial conversion feature of $13,348 at September 30, 2014. Accrued interest is equal to $1,252 at September 30, 2014. | | | 16,904 | | | | – | |
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On March 17, 2014, LG Capital Funding, LLC entered into an agreement to purchase $40,000 of notes payable to Frank Russo. The note bears interest at 8% per annum and was due March 17, 2015. During the nine months ended September 30, 2014, the the note and accrued interest was converted to common stock. | | | – | | | | – | |
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On March 27, 2014, Microcap Equity Group LLC entered into an agreement to purchase $25,000 of notes payable to Frank Russo. The note bears interest at 10% per annum and was due on demand. During the nine months ended September 30, 2014, the the note was converted to common stock. | | | – | | | | – | |
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Unsecured $18,000 convertible note payable to Tangiers Investment Group, LLC., which bears interest at 8% per annum and is due March 27, 2015. The note is discounted for its unamortized beneficial conversion feature of $8,778 at September 30, 2014. Accrued interest is equal to $738 at September 30, 2014. | | | 9,960 | | | | – | |
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On March 27, 2014, Tangiers Investment Group, LLC. entered into an agreement to purchase $15,000 of notes payable to Frank Russo. The note bears interest at 10% per annum and was due March 27, 2015. During the nine months ended September 30, 2014, the the note and accrued interest was converted to common stock. | | | – | | | | – | |
Unsecured $6,000 note payable to Andre Fluellen, which bears interest at 10% per annum and is due June 21, 2015. Accrued interest is equal to $166 at September 30, 2014. | | | 6,166 | | | | – | |
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Unsecured $10,000 note payable to Falmouth Street Holdings, LLC, which bears interest at 10% per annum and is due on demand. Accrued interest is equal to $474 at September 30, 2014. | | | 10,474 | | | | – | |
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On April 9, 2014, GEL Properties, LLC entered into an agreement to purchase $24,000 of notes payable to Frank Russo. The note bears interest at 8% per annum and is due April 9, 2015. During the nine months ended September 30, 2014, $16,500 of the note was converted to common stock. The note is discounted for its unamortized beneficial conversion feature of $3,915 at September 30, 2014. Accrued interest is equal to $582 at September 30, 2014. | | | 4,167 | | | | – | |
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Unsecured $5,000 note payable to Israek Idonije, which is noninterest bearing and was due July 3, 2014. During the nine months ended September 30, 2014, $2,800 was repaid on the loan and $1,875 of penalty interst was accrued at September 30, 2014. This note is in default at September 30, 2014. | | | 4,075 | | | | – | |
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On May 7, 2014, LG Capital Funding, LLC entered into an agreement to purchase $40,000 of notes payable to Frank Russo. The note bears interest at 8% per annum and is due May 7, 2015. The note is discounted for its unamortized beneficial conversion feature of $23,999 at September 30, 2014. Accrued interest is equal to $1,280 at September 30, 2014. | | | 17,281 | | | | – | |
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Unsecured $12,5000 convertible note payable to Microcap Equity Group LLC, which bears interest at 12% per annum and is due October 8, 2014. The note is discounted for its unamortized beneficial conversion feature of $546 at September 30, 2014. Accrued interest is equal to $719 at September 30, 2014. | | | 12,673 | | | | – | |
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Unsecured $4,200 convertible note payable to Tangiers Investment Group, LLC., which bears interest at 8% per annum and is due April 8, 2015. The note is discounted for its unamortized beneficial conversion feature of $2,186 at September 30, 2014. Accrued interest is equal to $161 at September 30, 2014. | | | 2,175 | | | | – | |
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Unsecured $20,000 promissory note payable to Health Information Systems Fund, LLC, which bears interest at 80% per annum and is due October 21, 2014. If the note is not repaid on its due date, penalty interest of 120% per annum shall be accrued until the note is paid. Accrued interest is equal to $3,112 at September 30, 2014. | | | 23,112 | | | | | |
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Unsecured $5,000 note payable to Andre Fluellen, which bears interest at 10% per annum and is due September 9, 2015. Accrued interest is equal to $29 at September 30, 2014. | | | 5,029 | | | | | |
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Unsecured $35,000 promissory note payable to Health Information Systems Fund, LLC, which bears interest at 80% per annum and is due December 20, 2014. If the note is not repaid on its due date, penalty interest of 120% per annum shall be accrued until the note is paid. Accrued interest is equal to $767 at September 30, 2014. | | | 35,767 | | | | | |
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Total Loans Payable | | $ | 547,739 | | | $ | 680,795 | |
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The Company accrued interest expense of $25,642 and $47,144 for the nine months ended September 30, 2014 and 2013, respectively, on the above loans. Accrued interest is included in the loan balances. |
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The Company borrowed $97,850 and $302,500 during the nine months ended September 30, 2014 and 2013, respectively. During the nine months ended September 30, 2014, the Company converted $428,418 of loans payable into 7,674,970,146 shares of the Company’s common stock and $34,000 of loans into 17,000,000 shares of the Company’s Series A preferred stock. During the nine months ended September 30, 2013, the Company converted $219,159 of loans payable into 1,210,999,766 shares of the Company’s common stock. |