Convertible Notes Payable | 9 Months Ended |
Sep. 30, 2013 |
Notes to Financial Statements | ' |
Note 7. CONVERTIBLE NOTES PAYABLE | ' |
In September and November 2011, the Company borrowed $50,000 and $32,500 respectively, from Asher Enterprises, Inc. The convertible promissory notes accrue interest at the rate of 8% per annum. They were due on September 7, 2012 and November 16, 2012, respectively. These notes were convertible by the holder after 180 days at 45% of the average of the lowest three closing bid prices in the ten trading day period before the conversion. |
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During the three month period ended March 31, 2013 Asher Enterprises issued notices of conversion to convert the principal balance remaining of $31,200 along with $2,000 in interest payable on the September 2011 note for 47,269,842 shares at a price of $0.0007 per share. The remaining balance of the note after the conversions was $-0-. A $58,354 loss on the conversion of the shares was recorded as the note was in default and a derivative liability was no longer recorded at the time of conversions. |
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During the six month period ended June 30, 2013 Asher Enterprises issued notices of conversion to convert $32,500 in principal and $2,600 in interest on the November 2011 note for 55,704,075 shares at a price of $0.0006 per share. The remaining balance of the note after the conversions was $-0-. A $58,833 loss on the conversion of the shares was recorded as the note was in default and a derivative liability was no longer recorded at the time of conversions. |
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On February 13, 2012 the Company issued a convertible promissory note to Asher Enterprises in the principal amount of $27,500 with an interest rate of 8% per annum due on November 13, 2012. The note was convertible by the holder after 180 days at 45% of the average of the lowest three closing bid prices in the ten trading day period before the conversion. The note is currently in default. |
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During the six month period ended June 30, 2013 Asher Enterprises issued notices of conversion to convert $27,500 in principal and $2,200 in interest on the February 2012 note for 79,798,040 shares at a price of $0.0003 per share. The remaining balance of the note after the conversions was $-0-. A $46,895 loss on the conversion of the shares was recorded as the note was in default and a derivative liability was no longer recorded at the time of conversions. |
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On June 15, 2012 the Company issued a convertible promissory note to Asher Enterprises in the principal amount of $83,500 with an interest rate of 8% per annum that is due on March 9, 2013. The note is convertible by the holder after 180 days at 35% of the lowest trading price in the sixty trading days before the conversion. This note is currently in default. |
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During the nine month period ended September 30, 2013 Asher Enterprises issued notices of conversion to convert $56,550 in on the June 2012 note for 421,572,871 shares at a price of $0.00013 per share. The remaining balance of the note after the conversions was $26,950. A $199,746 loss on the conversion of the shares was recorded as the note was in default and a derivative liability was no longer recorded at the time of conversions. |
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On August 13, 2012 the Company issued a convertible promissory note to Asher Enterprises in the principal amount of $20,000 with an interest rate of 8% per annum due on August 3, 2013. The note is convertible by the holder after 180 days at 35% of the lowest trading price in the thirty trading days before the conversion. |
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On April 15, 2013 the Company issued a convertible promissory note to Asher Enterprises in the principal amount of $53,000 with an interest rate of 8% per annum due on October 30, 2013. The note is convertible by the holder after 180 days at 40% of the lowest trading price in the thirty trading days before the conversion. This note was not yet convertible as of September 30, 2013. |
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On April 15, 2013 the Company issued a convertible promissory note to Asher Enterprises in the principal amount of $15,500 with an interest rate of 8% per annum due on November 15, 2013. The note is convertible by the holder after 180 days at 40% of the lowest trading price in the thirty trading days before the conversion. This note was not yet convertible as of September 30, 2013. |
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On May 14, 2013 the Company issued a convertible promissory note to Asher Enterprises in the principal amount of $32,500 with an interest rate of 8% per annum due on February 13, 2014. The note is convertible by the holder after 180 days at 45% of the lowest trading price in the thirty trading days before the conversion. This note was not yet convertible as of September 30, 2013. |
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On June 24, 2013 the Company issued a convertible promissory note to Asher Enterprises in the principal amount of $7,500 with an interest rate of 8% per annum due on March 19, 2014. The note is convertible by the holder after 180 days at 45% of the lowest trading price in the thirty trading days before the conversion. This note was not yet convertible as of September 30, 2013. |
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On September 19, 2013 the Company issued a convertible promissory note to Asher Enterprises in the principal amount of $32,500 with an interest rate of 8% per annum due on June 12, 2014. The note is convertible by the holder after 180 days at 45% of the lowest trading price in the thirty trading days before the conversion. This note was not yet convertible as of September 30, 2013. |
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On August 21, 2012, the Company issued a convertible promissory note in the amount of $1,500. The note is unsecured, due on demand and bears interest at 8% per annum. The note is convertible into shares of common stock at the market price. During the nine month period ended September 30, 2013 an additional $20,900 was loaned and $5,664 was repaid on these notes. In addition, $4,000 of these notes were converted to 4,000 shares of our Series B preferred stock As a result of these transactions there was a total principal balance due of $12,736 at September 30, 2013. |
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On April 1, 2013, a total of $18,000 in debt payable to a third party was converted to an unsecured demand promissory note with an interest rate of 8% that is convertible to common stock at market. The entire principal balance of this note was outstanding at September 30, 2013. |
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On February 19, 2013, the Company issued a convertible promissory note to CareBourn Partners in the principal amount of $6,000 with an interest rate of 8% per annum due on December 19, 2013. The note is convertible by the holder at any time at 35% of the average of the three lowest trading prices in the ten trading days before the conversion. On May 3, 2013, the Company issued another convertible promissory note in the principal amount of $15,000 with an interest rate of 8% per annum due on November 3, 2013. This note is convertible by the holder at any time at 50% of the average of the three lowest trading prices in the ten trading days before the conversion. Both of these notes totaling $21,000 was outstanding at September 30, 2013. |
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Total interest expense on these notes was $12,326 for the nine months ended September 30, 2013. |