NOTE 4. NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2013 |
Notes to Financial Statements | ' |
NOTE 4. NOTES PAYABLE | ' |
Note payable to related party, unsecured, due 8/3/2012, interest rate 0% | | $ | 1,950 | | | $ | 1,950 | |
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Notes payable to related parties, unsecured, due 12/31/2012, interest rate 0% | | $ | 11,810 | | | $ | 11,810 | |
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Note payable to non-related party, unsecured, due 2/8/12, quarterly interest due, convertible at holder’s option at $0.3235688 per TBT-DE share, interest rate 30% | | $ | 10,000 | | | $ | 10,000 | |
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Note payable to non-related party, unsecured, due 2/8/12, quarterly interest due, convertible at holder’s option at $0.3235688 per TBT-DE share, interest rate 30% | | $ | 25,000 | | | $ | 25,000 | |
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Note payable to non-related party, unsecured, due 2/17/12, quarterly interest due, convertible at holder’s option at $0.3235688 per TBT-DE share, interest rate 30% | | $ | 25,000 | | | $ | 25,000 | |
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Note payable to non-related party, unsecured, due 2/18/12, quarterly interest due, convertible at holder’s option at $0.3235688 per TBT-DE share, interest rate 30% | | $ | 10,000 | | | $ | 10,000 | |
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Note payable to non-related party, unsecured, due 2/18/13, annual interest due, convertible at holder’s option at $0.3235688 per TBT-DE share, interest rate 18% | | $ | 750 | | | $ | 750 | |
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Note payable to non-related party, unsecured, due 2/18/13, annual interest due, convertible at holder’s option at $0.3235688 per TBT-DE share, interest rate 18% | | $ | 6,875 | | | $ | 6,875 | |
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Note payable to non-related party, unsecured, due 2/15/13, annual interest due, convertible at holder’s option at $0.3235688 per TBT-DE share, interest rate 12% | | $ | 2,500 | | | $ | 2,500 | |
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Note payable to non-related party, unsecured, due 2/20/13, annual interest due, convertible at holder’s option at $0.3235688 per TBT-DE share, interest rate 12% | | $ | 3,750 | | | $ | 3,750 | |
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Note payable to non-related party, unsecured, due 2/21/13, annual interest due, convertible at holder’s option at $0.3235688 per TBT-DE share, interest rate 12% | | $ | 2,625 | | | $ | 2,625 | |
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Note payable to non-related party, unsecured, due 3/20/13, annual interest due, convertible at holder’s option at $0.3235688 per TBT-DE share, interest rate 12% | | $ | 5,433 | | | $ | 5,433 | |
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Note payable to non-related party, unsecured, due 3/22/13, annual interest due, convertible at holder’s option at $0.3235688 per TBT-DE share, interest rate 12% | | $ | 3,203 | | | $ | 3,203 | |
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Note payable to non-related party, unsecured, due 1/05/13, annual interest due, convertible at holder’s option at 51% of market as defined, interest rate 8%, conversion limited to total beneficial | | $ | - | | | $ | 10,500 | |
ownership of 4.99% (fully converted as of 12/31/2013) |
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Note payable to non-related party, unsecured, due 2/25/13, annual interest due, convertible at holder’s option at 51% of market as defined, interest rate 8%, conversion limited to total beneficial ownership of 4.99% | | $ | 23,904 | | | $ | 37,500 | |
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Note payable to related party, unsecured, $731,763, 5-years at 0% simple interest, due 7/1/2016, payment amounts vary each month, various late penalties. | | $ | 726,763 | | | $ | 726,763 | |
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Note payable to non-related party, unsecured, due 4/19/13, annual interest due, convertible at holder’s option at 51% of market as defined, interest rate 8%, conversion limited to total beneficial ownership of 4.99% | | $ | 52,500 | | | $ | 35,000 | |
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Note payable to non-related party,unsecured,due 08/29/2013, simple interest 8% convertible at holder’s option at $.249 per TBT-CA share. | | $ | 15,000 | | | $ | 15,000 | |
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Note payable to non-related party, unsecured, due 03/01/2013, simple interest 9%. | | $ | 5,000 | | | $ | 5,000 | |
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Note payable to non-related party, unsecured, due 01/31/2013, $12,000 in interest (2 months) (fully paid as of 12/31/2013) | | $ | - | | | $ | 32,000 | |
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Note payable to non-related party, unsecured, due 12/13/2013, simple interest 7%. | | $ | 5,342 | | | $ | 5,342 | |
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Note payable to non-related party, unsecured, due 01/31/2013, simple interest 18%. | | $ | 3,938 | | | $ | 3,938 | |
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Note payable to non-related party, unsecured, due on demand, simple interest 7%, convertible at anytime into common stock at 65% of market closing price on previous day | | $ | 25,000 | | | $ | - | |
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Note payable to non-related party unsecured, due 01/07/2014, simple interest 7%, default interest 10%, stock option | | $ | 15,000 | | | $ | - | |
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Note payable to non-related party, unsecured, due 01/15/2014, simple interest 7%, default interest 10%, stock option | | $ | 5,000 | | | $ | - | |
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Note payable to non-related party, unsecured, due 01/20/2014, simple interest 7%, default interest 10%, stock option | | $ | 65,272 | | | $ | - | |
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Note payable to non-related party, unsecured, due 03/28/2013, $13,000 in interest (1 month) | | $ | 32,000 | | | $ | - | |
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Note payable to non-related party, unsecured, due 01/23/2014, simple interest 9%, | | $ | 50,000 | | | $ | - | |
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Note payable to non-related party, unsecured, due 04/28/2014, simple interest 7%, default interest 10%, stock option | | $ | 9,440 | | | $ | - | |
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Note payable to non-related party, unsecured, due 05/25/2014, simple interest 7%, default interest 10%, stock option | | $ | 50,060 | | | $ | - | |
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Note payable to non-related party, unsecured, due 07/02/2014, simple interest 9%, | | $ | 15,000 | | | $ | — | |
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Note payable to non-related party,unsecured, due 10/25/2013, simple interest 18%, | | $ | 2,000 | | | $ | — | |
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Note payable to non-related party, unsecured, due 07/29/2014, simple interest 7%, default interest 10%, stock option | | $ | 1,900 | | | $ | — | |
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Note payable to non-related party, unsecured, due 09/19/2014, simple interest 7%, default interest 10%, stock option | | $ | 10,000 | | | $ | — | |
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Note payable to non-related party, unsecured, due 09/19/2014, simple interest 7%, default interest 10%, stock option | | $ | 65,000 | | | $ | — | |
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Note payable to non-related party, unsecured, due 09/29/2014, simple interest 7%, default interest 10%, stock option | | $ | 20,000 | | | $ | — | |
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Note payable to non-related party, unsecured, due 12/27/2013, simple interest 9%, | | $ | 15,000 | | | $ | — | |
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Note payable to non-related party, unsecured, due 10/28/2014, simple interest 7%, default interest 10%, stock option | | $ | 2,500 | | | $ | — | |
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Note payable to non-related party, unsecured, due 10/29/2014, simple interest 7%, default interest 10%, stock option | | $ | 10,000 | | | $ | — | |
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Note payable to non-related party, unsecured, due 11/10/2014, simple interest 7%, default interest 10%, stock option | | $ | 5,000 | | | $ | — | |
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Note payable to non-related party, unsecured, due 11/12/2014, simple interest 9%, Convertible up to the due date | | $ | 11,000 | | | $ | — | |
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Note payable to non-related party, unsecured, due 11/20/2014, simple interest 7%, default interest 10%, stock option | | $ | 20,000 | | | $ | — | |
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Note payable to non-related party, unsecured, due 12/02/2014, simple interest 7%, default interest 10%, stock option | | $ | 5,000 | | | $ | — | |
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Note payable to non-related party, unsecured, due 01/27/2014, simple interest 10% | | $ | 5,000 | | | $ | — | |
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| | $ | 1,375,861 | | | $ | 979,939 | |
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Less current portion | | | (1,208,854 | ) | | | (616,051 | ) |
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| | $ | 22,996 | | | | 38,072 | |
Less note discount |
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Long-term portion | | $ | 167,007 | | | $ | 363,888 | |
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Required principal payments from December 31, 2013 forward are as follows: |
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2014 | | $ | 812,932 | | | | | |
2015 | | $ | 123,709 | | | | | |
2016 | | $ | 43,298 | | | | | |
2017 | | $ | - | | | | | |
| | $ | 979,939 | | | | | |
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Interest expense under notes payable for the year ended December 31, 2012 and December 31, 2013 was $118,194 and $170,428, respectively. |
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During the year ended December 31, 2012 and December 31, 2013 the Company recognized a beneficial conversion feature expense on borrowing from convertible notes of $112,064 and $94,161, respectively. During the year December 31, 2012 and December 31, 2013 the unamortized note discount from the beneficial conversion feature was $38,072 and $22,996, respectively. |
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In 2012 the company borrowed $110,000 under convertible notes with a variable conversion price based on a percentage of market price. Notes converted at December 31, 2012 and December 31, 2013 were $27,000 and $47,500, respectively. The Company determined that these notes have an embedded derivative and are therefore accounted for at fair value. The Company recorded fair market value adjustments at December 31, 2012 and December 31, 2013 of $448,137 and $11,969, respectively. The fair market value adjustments were based on the Black-Sholes method using the following assumptions: risk free rate of 0.08%, dividend yield of 0%, expected life of 1 year, volatility of 172% - 197%. The fair value equity obligation liability under the notes at December 31 2012 and December 31, 2013 were $463,037 and $150,067, respectively. |