NOTE 4. NOTES PAYABLE | December 31, 2015 December 31, 2014 Note payable to related party, unsecured, due 8/3/2012, interest rate 0%. Currently in default. $ 1,950 $ 1,950 Notes payable to related party, unsecured, due 12/31/2012, interest rate 0%. Currently in default. $ 11,810 $ 11,810 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. $ 180,001 $ 726,763 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%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. $ 10,000 $ 10,000 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%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. $ 25,000 $ 25,000 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%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. $ 25,000 $ 25,000 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%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. $ 10,000 $ 10,000 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%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. $ 750 $ 750 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%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. $ 6,875 $ 6,875 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%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. $ 2,500 $ 2,500 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%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. $ 3,750 $ 3,750 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%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. $ 2,625 $ 2,625 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%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. $ 5,433 $ 5,433 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%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. $ 3,203 $ 3,203 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%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue and/or the continued conversion of the company's stock. $ - $ 6,605 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 Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. Note payable to related party, unsecured, due 03/01/2013, simple interest 9%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. $ 5,000 $ 5,000 Note payable to non-related party, unsecured, due 12/13/2013, simple interest 7%. Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 5,342 Note payable to non-related party, unsecured, due 01/31/2013, simple interest 18%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. $ 3,938 $ 3,938 Note payable to non-related party, unsecured, due 01/07/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 15,000 Note payable to non-related party, unsecured, due 01/15/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 5,000 Note payable to non-related party, unsecured, due 01/20/2014, simple interest 7%, default interest 10%, $ - $ 65,272 Stock option issued as an additional transaction cost for receipt of funds from note payable. Note payable to related party, unsecured, due 01/23/2014, simple interest 9%. Currently in default. $ 50,000 $ 50,000 Note payable to non-related party, unsecured, due 03/28/2013, $13,000 in interest (1 month). $ - $ 17,000 Note payable to non-related party, unsecured, due 04/28/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 9,440 Note payable to non-related party, unsecured, due 05/05/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 50,060 Note payable to related party, unsecured, due 07/02/2014, simple interest 9%. $ 15,000 $ 15,000 Note payable to non-related party, unsecured, due 09/19/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 10,000 Note payable to non-related party, unsecured, due 07/29/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 1,900 Note payable to non-related party, unsecured, due 07/25/2013, simple interest 18%. Currently in default. $ 2,000 $ 2,000 Note payable to non-related party, unsecured, due 09/19/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 65,000 Note payable to non-related party, unsecured, due 12/27/2013, simple interest 9% quarterly, Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. $ 15,000 $ 15,000 Note payable to non-related party, unsecured, due 09/29/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 20,000 Note payable to non-related party, unsecured, due 10/28/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 2,500 Note payable to non-related party, unsecured, due 10/29/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 10,000 Note payable to non-related party, unsecured, due 11/10/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 5,000 Note payable to related party, unsecured, due 11/12/2014, simple interest 9%, Convertible at $0.04 per share, currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. $ 11,000 $ 11,000 Note payable to non-related party, unsecured, due 11/20/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 20,000 Note payable to non-related party, unsecured, due 12/02/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 5,000 Note payable to non-related party, unsecured, due 1/27/2014, simple interest 10%, $ - $ 4,235 Note payable to non-related party, unsecured, due 1/07/2015, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 25,000 Note payable to non-related party, unsecured, due 1/28/2015, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 1,253 Note payable to non-related party, unsecured, due 1/29/2015, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 3,500 Note payable to non-related party, unsecured, due 2/10/2015, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 990 Note payable to non-related party, unsecured, due 2/17/2015, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 4,500 Note payable to non-related party, unsecured, due 2/20/2015, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 5,000 Note payable to non-related party, unsecured, due 3/10/2015, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 2,500 Note payable to non-related party, unsecured, due 3/31/2015, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 2,500 Note payable to non-related party, unsecured, due 4/03/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 5,890 Note payable to related party, unsecured, due 4/08/2015, simple interest 7%, Convertible at $0.0072 per share. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. $ 15,000 $ 15,000 Note payable to non-related party, unsecured, due 4/10/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 4,331 Note payable to non-related party, unsecured, due 4/27/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 2,500 Note payable to non-related party, unsecured, due 5/13/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 5,360 Note payable to non-related party, unsecured, due 5/26/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 895 Note payable to non-related party, unsecured, due 9/11/2014, simple interest 10%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. Stock option issued as an additional transaction cost for receipt of funds from note payable. $ 5,000 $ 5,000 Note payable to non-related party, unsecured, due 6/10/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 3,207 Note payable to non-related party, unsecured, due 6/17/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 600 Note payable to related party, unsecured, due 8/05/2015, simple interest 7%, default interest 10%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. Stock option issued as an additional transaction cost for receipt of funds from note payable. $ 10,000 $ 10,000 Note payable to non-related party, unsecured, due 7/09/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 3,750 Note payable to non-related party, unsecured, due 9/03/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 1,000 Note payable to non-related party, unsecured, due 10/19/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 1,486 Note payable to non-related party, unsecured, due 10/22/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 3,500 Note payable to non-related party, unsecured, due 10/28/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 4,360 Note payable to non-related party, unsecured, due 11/11/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 5,810 Note payable to non-related party, unsecured, due 11/19/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable. $ - $ 15,000 Note payable to related party unsecured, due 12/02/2015, simple interest 7%, default interest 10%. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. Currently in default. $ 106,334 $ 214,334 Note payable to non-related party, unsecured, due 3/26/2016, simple interest 8%, convertible at $0.0017 per share. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. Currently in default. $ 25,000 $ - Note payable to related party, unsecured, due 4/11/2016, simple interest 10%. $ 13,000 $ - Note payable to related party, unsecured, due 11/11/2015, simple interest 10%. Currently in default. $ 45,000 $ - Note payable to non-related party, unsecured, due 11/11/2015, simple interest 10%. Currently in default. $ 2,500 $ - Note payable to related party, unsecured, due 12/26/2015, simple interest 10%. Currently in default. $ 25,000 $ - $ 652,669 $ 1,617,217 Less note discounts (6,250 ) (5,000 ) Less current - related parties (489,095 ) (697,225 ) Less current non-related parties (157,324 ) (871,694 ) Long-term related parties $ - $ 43.298 Required principal payments from December 31, 2015 forward are as follows: 2016 $ 652,669 2017 $ - 2018 $ - 2019 $ - 2020 $ - $ 652,669 Interest expense under notes payable for the years ended December 31, 2014 and December 31, 2015 was $188,046 and $198,327, respectively. During the years ended December 31, 2014 and December 31, 2015 the Company recognized a beneficial conversion feature expense on borrowing from convertible notes of $32,996 and $23,750, respectively. During the years ended December 31, 2014 and December 31, 2015 the unamortized note discount from the beneficial conversion feature was $5,000 and $6,250, respectively. 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, 2014 and December 31, 2015 were $103,395 and $103,395, 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 for the years ended ended December 31, 2014 and December 31, 2015 of $21,559 and $(25,456), respectively. The fair market value adjustments were based on the Black-Sholes method using the following assumptions: risk free rates ranging between 0.10% - 0.21%, dividend yield of 0%, expected life of 1 year, volatility between 128% - 354%. The fair value derivative liability under the notes as of December 31, 2014 and December 31, 2015 was $25,456 and none, respectively. |