Convertible Debt | 3 Months Ended |
Mar. 31, 2014 |
Notes | ' |
Convertible Debt | ' |
Note 6 - Convertible Debt |
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Asher |
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On July 1, 2013, the Company issued an 8% convertible note (the “July 1 Note”) in the amount of $100,000 to Asher Enterprises, Inc. (“Asher”). The principal and accrued interest is payable on March 26, 2014, or such earlier date as defined in the agreement. The note is convertible by Asher at any time after the six month anniversary of the issue date and by the Company at any time after issue with conversion periods as defined in the agreement. The note is convertible into shares of the Company’s common stock at a price of 60% of the average of the three lowest trading prices of the stock during the ten day trading period ending one day prior to the date of conversion. During the three months ended March 31, 2014, the total principal amount of $100,000 and accrued interest was converted into 808,000,000 shares of common stock. The outstanding balances at March 31, 2014 and December 31, 2013 were $-0- and $100,000, respectively, with accrued interest of $4,011 at December 31, 2013. |
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Auctus |
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On August 19, 2013, the Company issued an 8% convertible note (the “August 19 Note”) in the amount of $50,000 to Auctus Private Equity Fund, LLC (“Auctus”). The principal and accrued interest is payable on or before May 19, 2014. The note is convertible by Auctus at any time after the six month anniversary of the issue date and by the Company at any time after issue with conversion periods as defined in the agreement. The note is convertible into shares of the Company’s common stock at a price of 62.5% of the average of the two days during the ten day trading period prior to the date of conversion. During the three months ended March 31, 2014, principal of $22,750 was converted into 150,000,000 shares of common stock. The outstanding balances at March 31, 2014 and December 31, 2013 were $27,250 and $50,000, respectively, with accrued interest of $2,111 and $1,458 at March 31, 2014 and December 31, 2013, respectively. |
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Fife and Typenex |
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In December 2012, the Company entered into a $325,000 convertible note (the “December 12, 2012 Note #21”) consisting of three tranches to be drawn down with the first tranche totaling $125,000, including $25,000 in loan costs and an additional two tranches totaling $200,000. The note bears a 5% annual interest rate and matures eighteen months from the issuance. The note is convertible into common shares of the Company based on 70% of the average of the 3 lowest closing prices of the common stock for the proceeding 15 consecutive trading days immediately prior to the conversion. During 2013, the conversion price was fixed at $0.005 per share. As of December 31, 2012, the Company only drew down the first tranche totaling $125,000. On February 11, 2013, April 5, 2013, April 23, 2013, and July 1, 2013, the Company drew down an additional $250,000. During the year ended December 31, 2013, principal of $237,518 and accrued interest was converted into 786,866,142 shares of common stock. During the three months ended March 31, 2014, principal of $75,264 was converted into 846,201,316 shares of common stock. The outstanding balances at March 31, 2014 and December 31, 2013 were $54,555 and $129,819, respectively, with accrued interest of $2,111 and $1,458 at March 31, 2014 and December 31, 2013, respectively. |