5. Loans Payable | 12 Months Ended |
Dec. 31, 2014 |
Debt Disclosure [Abstract] | |
5. Loans Payable | Loans payable at December 31, 2014 and 2013 consisted of the following: |
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| | 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 year ended December 31, 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 $1,962 and $1,396 at December 31, 2014 and 2013, respectively. This note is in default at December 31, 2014. | | | 7,614 | | | | 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 $24,672 and $16,244 at December 31, 2014 and 2013, respectively. This note is in default at December 31, 2014. | | | 94,672 | | | | 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 $5,244 and $3,317 at December 31, 2014 and 2013, respectively. This note is in default at December 31, 2014. | | | 21,244 | | | | 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 $2,667 and $1,970 at December 31, 2014 and 2013, respectively. This note is in default at December 31, 2014. | | | 8,457 | | | | 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 $4,470 and $2,663 at December 31, 2014 and 2013, respectively. This note is in default at December 31, 2014. | | | 19,470 | | | | 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 year ended December 31, 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 year ended December 31, 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 year ended December 31, 2014, $9,000 of the note was converted to common stock. Accrued interest is equal to $4,443 and $3,379 at December 31, 2014 and 2013, respectively. This note is in default at December 31, 2014. | | | 15,090 | | | | 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 year ended December 31, 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 year ended December 31, 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 year ended December 31, 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 year ended December 31, 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 year ended December 31, 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 year ended December 31, 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 year ended December 31, 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 $7,593 and $3,378 at December 31, 2014 and 2013, respectively. | | | 42,593 | | | | 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 $9,526 and $4,238 at December 31, 2014 and 2013, respectively. | | | 53,448 | | | | 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 year ended December 31, 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 $3,959 and $1,752 at December 31, 2014 and 2013, respectively. This note is in default at December 31, 2014. | | | 28,471 | | | | 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 December 31, 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 year ended December 31, 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. | | | – | | | | 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 $2,639 and $1,034 at December 31, 2014 and 2013, respectively. This note is in default at December 31, 2014. | | | 22,639 | | | | 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 year ended December 31, 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 $3,762 and $1,531 at December 31, 2014 and 2013, respectively. This note is in default at December 31, 2014. | | | 28,762 | | | | 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 December 31, 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 year ended December 31, 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 year ended December 31, 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 year ended December 31, 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 December 31, 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 December 31, 2014 and 2013, respectively. This note is in default at December 31, 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 $1,620 and $457 at December 31, 2014 and 2013, respectively. This note is in default at December 31, 2014. | | | 16,120 | | | | 8,755 | |
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Unsecured $8,500 non-interest bearing note payable to Azfar Hague due February 5, 2014. During the year ended December 31, 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 year ended December 31, 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 year ended December 31, 2014, $3,000 of the note was converted to common stock. Accrued interest is equal to $437 and $142 at December 31, 2014 and 2013, respectively. This note is in default at December 31, 2014. | | | 5,937 | | | | 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 year ended December 31, 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 year ended December 31, 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 year ended December 31, 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 $557 and $155 at December 31, 2014 and 2013, respectively. This note is in default at December 31, 2014. | | | 5,557 | | | | 2,087 | |
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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 year ended December 31, 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 year ended December 31, 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 $1,177 at December 31, 2014. This note is in default at December 31, 2014. | | | 8,877 | | | | – | |
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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 December 31, 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 December 31, 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 $6,039 at December 31, 2014. Accrued interest is equal to $1,837 at December 31, 2014. | | | 24,798 | | | | – | |
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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 year ended December 31, 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 year ended December 31, 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 $4,241 at December 31, 2014. Accrued interest is equal to $1,101 at December 31, 2014. | | | 14,860 | | | | – | |
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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 year ended December 31, 2014, the the note and accrued interest was converted to common stock. | | | – | | | | – | |
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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 $317 at December 31, 2014. | | | 6,317 | | | | – | |
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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 $726 at December 31, 2014. | | | 10,726 | | | | – | |
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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 year ended December 31, 2014, $16,500 of the note was converted to common stock. The note is discounted for its unamortized beneficial conversion feature of $2,015 at December 31, 2014. Accrued interest is equal to $733 at December 31, 2014. | | | 6,218 | | | | – | |
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Unsecured $5,000 note payable to Israek Idonije, which is noninterest bearing and was due July 3, 2014. During the year ended December 31, 2014, $2,800 was repaid on the loan and $1,986 of penalty interest was accrued at December 31, 2014. This note is in default at December 31, 2014. | | | 4,186 | | | | – | |
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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 $13,917 at December 31, 2014. Accrued interest is equal to $2,087 at December 31, 2014. | | | 28,170 | | | | – | |
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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. Accrued interest is equal to $1,097 at December 31, 2014. | | | 13,597 | | | | – | |
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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 $1,128 at December 31, 2014. Accrued interest is equal to $246 at December 31, 2014. | | | 3,318 | | | | – | |
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Unsecured loan advances of $333,000 payable to Health Information Systems Fund, LLC, which bear no interest and are due on demand. | | | 333,000 | | | | – | |
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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 $155 at December 31, 2014. | | | 5,155 | | | | – | |
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Unsecured $2,500 note payable to Andre Fluellen, which bears no interest and is due October 20 2015. | | | 2,500 | | | | – | |
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Total Loans Payable | | $ | 861,296 | | | $ | 680,795 | |
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The Company accrued interest expense of $52,266 and $64,580 for the years ended December 31, 2014 and 2013, respectively, on the above loans. Accrued interest is included in the loan balances. |
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The Company borrowed $419,350 and $281,000 during the years ended December 31, 2014 and 2013, respectively. The Company made payments of $2,800 and $5,000 on the loans during the years ended December 31, 2014 and 2013. During the year ended December 31, 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 payable into 17,000,000 shares of the Company’s Series A preferred stock. During the year ended December 31, 2013, the Company converted $257,267 of loans payable into 1,975,718,232 shares of the Company’s common stock. |