Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Oct. 18, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | Greenfield Farms Food, Inc. | |
Entity Central Index Key | 1,440,517 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer | No | |
Is Entity a Voluntary Filer | No | |
Is Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 1,237,060,384 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 76,777 | $ 54,423 |
Credit card receivables | 16,130 | 4,459 |
Inventory | 25,309 | 25,309 |
Deferred charges | 1,667 | 1,834 |
Total Current Assets | 119,883 | 86,025 |
Property and Equipment | ||
Equipment, computer hardware and software | 187,933 | 178,771 |
Accumulated depreciation | (129,134) | (118,443) |
Property and equipment, net | 58,799 | 60,328 |
Other Assets | ||
Security Deposits | 4,128 | 4,128 |
Total Assets | 182,810 | 150,481 |
Current Liabilities | ||
Accounts Payable | 99,266 | 72,869 |
Accrued wages and payroll expenses | 12,015 | 23,444 |
Accrued interest | 44,321 | 32,342 |
Accrued interest - convertible notes payable | 61,584 | 48,194 |
Derivative Liability | 547,802 | 572,565 |
Note Payable | 81,000 | 81,300 |
Notes payable - related parties | 584,387 | 483,932 |
Convertible notes payable, net of debt discount | 351,050 | 319,384 |
Total Liabilities | 1,781,425 | 1,634,030 |
Stockholders' Deficit | ||
Common stock, par value $.001 3,950,000,000 shares authorized; 933,336,455 and 719,614,372 shares issued and outstanding, respectively | 933,336 | 719,614 |
Warrants | 507,280 | 507,280 |
Additional paid-in capital | 179,251 | 382,933 |
Accumulated deficit | (3,218,624) | (3,093,518) |
Total Stockholders' Deficit | (1,598,615) | (1,483,549) |
Total Liabilities and Stockholders' Deficit | 182,810 | 150,481 |
Series A Preferred Stock [Member] | ||
Stockholders' Deficit | ||
Preferred stock, par value | 97 | 97 |
Series B Preferred Stock [Member] | ||
Stockholders' Deficit | ||
Preferred stock, par value | 44 | 44 |
Series D Preferred Stock [Member] | ||
Stockholders' Deficit | ||
Preferred stock, par value | $ 1 | $ 1 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Stockholders' Deficit | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, authorized shares | 50,000,000 | 50,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, Authorized | 3,950,000,000 | 3,950,000,000 |
Common stock, Issued | 933,336,455 | 719,614,372 |
Common stock, outstanding | 933,336,455 | 719,614,372 |
Series A Preferred Stock [Member] | ||
Stockholders' Deficit | ||
Preferred stock, issued shares | 96,623 | 96,623 |
Preferred stock, outstanding shares | 96,623 | 96,623 |
Series B Preferred Stock [Member] | ||
Stockholders' Deficit | ||
Preferred stock, issued shares | 44,000 | 44,000 |
Preferred stock, outstanding shares | 44,000 | 44,000 |
Series D Preferred Stock [Member] | ||
Stockholders' Deficit | ||
Preferred stock, issued shares | 1,000 | 1,000 |
Preferred stock, outstanding shares | 1,000 | 1,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Sales | ||||
Food and beverage | $ 390,146 | $ 459,321 | $ 764,604 | $ 846,129 |
Vending receipts | 1,384 | 5,018 | 4,018 | 10,499 |
Total sales | 391,530 | 464,339 | 768,622 | 856,628 |
Cost of Goods Sold | 284,647 | 403,047 | 586,528 | 746,918 |
Gross Profit | 106,883 | 61,292 | 182,094 | 109,710 |
Operating Expenses | ||||
Telephone and utilities | 17,678 | 25,270 | 36,391 | 49,818 |
Legal, accounting and professional fees | 15,869 | 91,363 | 37,643 | 111,058 |
Rent | 16,250 | 17,850 | 27,950 | 32,600 |
Advertising | 8,784 | 4,304 | 16,247 | 9,173 |
Repairs and maintenance | 5,570 | 6,944 | 15,287 | 12,836 |
Bank and credit card processing charges | 6,206 | 8,075 | 12,158 | 15,247 |
Wages and taxes | 21,200 | 27,112 | 42,791 | 50,641 |
Depreciation | 5,536 | 6,353 | 10,691 | 12,450 |
Other | 34,943 | 29,850 | 79,525 | 55,833 |
Total Operating Expenses | 132,036 | 217,121 | 278,683 | 349,656 |
Loss From Operations | (25,153) | (155,829) | (96,589) | (239,946) |
Other Expenses (Income) | ||||
Interest expense | 24,556 | 14,164 | 40,430 | 24,666 |
Derivative expense | 23,386 | 174,040 | 28,075 | 208,813 |
Change in derivative liability | (31,177) | 511,171 | (113,938) | 612,600 |
Amoritization expense on discount of debt | 23,629 | 36,125 | 73,950 | 71,344 |
Total Other Expenses (Income) | 40,394 | 735,500 | 28,517 | 917,423 |
Loss Before Provision for Income Tax | (65,547) | (891,329) | (125,106) | (1,157,369) |
Provision for Income Tax | ||||
Net Income (Loss) | $ (65,547) | $ (891,329) | $ (125,106) | $ (1,157,369) |
Weighted Average Number of Shares Outstanding: | ||||
Basic and Diluted | 703,198,699 | 20,638,877 | 905,846,969 | 22,057,437 |
Net Loss per Share: | ||||
Basic and Diluted | $ 0 | $ (0.04) | $ 0 | $ (0.05) |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT (unaudited) - 6 months ended Jun. 30, 2016 - USD ($) | Preferred Stock | Common Stock | Warrants | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance, Shares at Dec. 31, 2015 | 141,623 | 719,614,372 | ||||
Beginning Balance, Amount at Dec. 31, 2015 | $ 142 | $ 719,614 | $ 507,280 | $ 382,933 | $ (3,093,518) | $ (1,483,549) |
Issuance of common stock to convertible noteholders, Shares | 213,722,083 | |||||
Issuance of common stock to convertible noteholders, Amount | $ 213,722 | (203,682) | 10,040 | |||
Net loss | (125,106) | (125,106) | ||||
Ending Balance, Shares at Jun. 30, 2016 | 141,623 | 933,336,455 | ||||
Ending Balance, Amount at Jun. 30, 2016 | $ 142 | $ 933,336 | $ 507,280 | $ 179,251 | $ (3,218,624) | $ (1,598,615) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash Flows from Operating Activities: | ||
Net loss for the period | $ (125,106) | $ (1,157,369) |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||
Depreciation | 10,691 | 12,450 |
Amortization of deferred financing costs | 3,167 | 6,083 |
Amoritization of discount on debt | 73,950 | 71,344 |
Change in derivative liability | (113,938) | 612,600 |
Initial derivative liability expense | 28,075 | 208,813 |
Convertible notes issued for services | 50,000 | |
Changes in Assets and Liabilities | ||
Increase in accounts receivable | (11,671) | (9,575) |
Increase in deferred debt charges | (3,000) | (7,500) |
Increase in accounts payable | 26,396 | 2,174 |
Increase in accrued expenses | 14,164 | 33,505 |
Net Cash Used in Operating Activities | (97,272) | (177,475) |
Cash Flow from Investing Activities | ||
Purchase of property and equipment | (9,162) | (20,136) |
Net Cash Provided by (Used in) Investing Activities | (9,162) | (20,136) |
Cash Flow From Financing Activities | ||
Proceeds from notes payable - related parties | 100,455 | 242,487 |
Proceeds from notes payable | 300 | |
Proceeds from convertible notes payable | 33,000 | 126,500 |
Payments of notes payable - related parties | (141,204) | |
Payments of notes payable | (300) | (200) |
Payments on convertible notes payable | (4,367) | |
Net Cash Provided by Financing Activities | 128,788 | 227,883 |
Net Increase in Cash and Cash Equivalents | 22,354 | 30,272 |
Cash and Cash Equivalents - Beginning | 54,423 | 59,843 |
Cash and Cash Equivalents End of Period | 76,777 | 90,115 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 17 | 67 |
Cash paid for income taxes | ||
Non-Cash Investing and Financing Activities: | ||
Interest accrued on convertible notes | 17,839 | 17,839 |
Debt discount from fair value of embedded derivatives | 27,499 | 84,000 |
Common stock issued for covertible notes and accrued interest | 10,040 | 17,176 |
Accounts payable cancelled in exchange for convertible notes |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 1. BASIS OF PRESENTATION | The following interim unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Regulation S-K as promulgated by the Securities and Exchange Commission. Accordingly, these financial statements do not include all of the disclosures required by generally accepted accounting principles for complete financial statements. These interim unaudited financial statements should be read in conjunction with the Companys audited financial statements for the period ended December 31, 2014. In the opinion of management, the interim unaudited financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim period presented. The consolidated financial statements for the three and six month periods ended June 30, 2016 include the financial statements of the Company and its operating subsidiary Carmelas Pizzeria. The statements of operations and cash flows reflect the results of operations and the changes in cash flows of the Company for the three and six month periods ended June 30, 2016. Operating results for the three and six month periods ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 2. GOING CONCERN | The accompanying financial statements have been prepared on a going concern basis of accounting which contemplates continuity of operations, realization of assets, liabilities, and commitments in the normal course of business. As of June 30, 2016 and December 31, 2015, the Company had a working capital deficit and has incurred significant losses since inception. Further losses are anticipated raising substantial doubt as to the Companys ability to continue as a going concern. The accompanying financial statements do not reflect any adjustments that might result if the Company is unable to continue as a going concern. The Company plans to acquire sufficient capital from its investors with which to pursue its business plan. There can be no assurance that the future operations will be significant and profitable, or that the Company will have sufficient resources to meet its objectives. There is no assurance that the Company will be successful in raising additional funds. |
ORGANIZATION AND NATURE OF BUSI
ORGANIZATION AND NATURE OF BUSINESS | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 3. ORGANIZATION AND NATURE OF BUSINESS | Greenfield Farms Food, Inc. (GRAS or the "Company") was incorporated under the laws of the State of Nevada on June 2, 2008. In October 2013, the Company entered into an Asset Purchase Agreement with COHP, LLC (COHP) through which the Company acquired certain of the assets and liabilities of COHP including the operations of Carmelas Pizzeria (Carmelas) through a newly formed wholly-owned subsidiary Carmelas Pizzeria CO, Inc. Carmela's Pizzeria presently has three Dayton, Ohio area locations offering authentic New York style pizza. Carmela's offers a full service menu for Dine In, Carry out and Delivery, catering as well as pizza buffets in select stores. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Accounting Basis The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (GAAP accounting). The Company has adopted a December 31 year end. Use of Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value of Financial Instruments The estimated fair value of financial instruments has been determined by the Company using available market information and appropriate methodologies; however, considerable judgment is required in interpreting information necessary to develop these estimates. Accordingly, the Companys estimates of fair values are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The fair values of cash and cash equivalents, accounts receivable, inventory, deferred charges, accounts payable and accrued expenses, and notes payable approximate their carrying amounts because of the short maturities of these instruments. The fair values of notes and loans payable to non-related parties approximate their carrying values because of the short maturities of these instruments. The fair value of long-term debt to non-related parties approximates carrying values, net of discounts applied, based on market rates currently available to the Company. Fair value measurements are determined under a three-level hierarchy for fair value measurements that prioritizes the inputs to valuation techniques used to measure fair value, distinguishing between market participant assumptions developed based on market data obtained from sources independent of the reporting entity (observable inputs) and the reporting entitys own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). Fair value is the price that would be received to sell an asset or would be paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. In determining fair value, the Company primarily uses prices and other relevant information generated by market transactions involving identical or comparable assets (market approach). The Company also considers the impact of a significant decrease in volume and level of activity for an asset or liability when compared with normal activity to identify transactions that are not orderly. The highest priority is given to unadjusted quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Securities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The three hierarchy levels are defined as follows: Level 1 Quoted prices in active markets that is unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The Company has determined that its derivative liabilities fall under Level 2. Derivative liabilities were $547,802 and $572,565 at June 30, 2016 and December 31, 2015, respectively. Credit risk adjustments are applied to reflect the Companys own credit risk when valuing all liabilities measured at fair value. The methodology is consistent with that applied in developing counterparty credit risk adjustments, but incorporates the Companys own credit risk as observed in the credit default swap market. Income Taxes The Company has elected to be taxed as a C corporation. Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. Basic Income (Loss) Per Share Basic income (loss) per share is calculated by dividing the Companys net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Companys net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There were warrants outstanding convertible into 179,886 shares of common stock at June 30, 2016. Basic and diluted loss per share was the same for each period presented as the inclusion of all potential common shares outstanding would have been anti-dilutive. Dividends The Company has not adopted any policy regarding payment of dividends. No dividends have been paid during any of the periods shown. Impairment of Long-Lived Assets The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. Advertising Costs The Companys policy regarding advertising is to expense advertising when incurred. The Company incurred advertising expense of $16,247 and $9,173 during the six month periods ended June 30, 2016 and 2015, respectively. Property and Equipment Property and equipment is stated at historical cost less accumulated depreciation. Depreciation is provided using the straight-line method over the three to five year estimated useful lives of the assets. Depreciation expense totaled $10,691 and $12,450 for the six month periods ended June 30, 2016 and 2015, respectively. Stock-Based Compensation Stock-based compensation is accounted for at fair value in accordance with ASC 718. To date, the Company has not adopted a stock option plan and has not granted any stock options. During the six months ended June 30, 2016, the Company did not issue any stock-based payments to its employees. Accounting Pronouncements No accounting standards or interpretations issued or recently adopted are expected to have a material impact on the Companys financial position, operations or cash flows. |
NOTES PAYABLE
NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 5. NOTES PAYABLE | The Company has outstanding a promissory note for $50,000 issued in 2011. The note is secured by the Companys common stock, bears 8% interest, and was due on January 26, 2012. The note is currently in default with a default interest rate of 12%. The Company received demand for payment on this note including default interest in the second quarter of 2016 and recorded additional interest expense of $7,786 at the default interest rate. In addition, the Company currently has $31,000 in notes payable to various parties bearing interest at 8%, all of which have matured and are in default. Interest expense on the total principal balance of $81,000 was $11,992 for the six months ended June 30, 2016. Additional notes in the amount of $300 outstanding at December 31, 2015 and accrued interest of $17 was repaid during the six month period ended June 30, 2016. |
NOTES PAYABLE - RELATED PARTIES
NOTES PAYABLE - RELATED PARTIES | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 6. NOTES PAYABLE - RELATED PARTIES | Entities controlled by the members have loaned monies to COHP for working capital purposes. The loans are non-interest bearing and have no specific terms of repayment. A related party loan from KB Air is secured by all the assets of the Company. Additional loans have also been made by officers and related parties to the Company for general working capital purposes. The activity for the six month period ended June 30, 2016 is as follows: June 30, 2016 Beginning balance at December 31, 2015 $ 483,932 Advances, net 100,455 Balance, June 30, 2016 $ 584,387 |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 7. CONVERTIBLE NOTES PAYABLE | As of December 31, 2015 there was a total of $4,367 due to the Gulfstream 1998 Irrevocable Trust in convertible notes payable that were convertible at 45% of the lowest trading price in the thirty trading days before the conversion creating a derivative liability. During the six month period ended June 30, 2016, the entire balance of these notes was repaid leaving no balance due at June 30, 2016. On October 29, 2013, the Company issued a convertible promissory note to Cresthill Associates in the principal amount of $25,000 with an interest rate of 8% per annum due on October 29, 2014 in payment of a $25,000 fee for work performed to complete the acquisition of the assets of Carmelas Pizzeria. This note is convertible by the holder at any time at 45% of the lowest trading price in the ninety trading days before the conversion beginning six months from the issue date. In the quarter ended December 31, 2014, $12,500 of this note was sold to Beaufort Capital the entire balance of which remains unpaid. In the quarter ended June 30, 2015, $6,250 of this note was sold to MM Visionary Consultants, which converted that entire balance to common stock in the year ended December 31, 2015 leaving a balance due to MM Visionary Consultants of $0 as of that date. In the year ended December 31, 2015, the remaining $6,250 of this note was sold to Microcap Equity leaving a remaining balance of $0 as of December 31, 2015 payable to Cresthill Associates. During the year ended December 31, 2015, Microcap equity converted $833 of this amount leaving a balance due at that date of $5,417, which remains outstanding at June 30, 2016. In November 2013, the Company issued a convertible promissory note to Asher Enterprises in the principal amount of $22,500 with an interest rate of 8% per annum due on August 27, 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. In April 2014, this note was sold and assigned to two entities unaffiliated with Asher or the Company including $9,000 sold to CareBourn Capital that remains outstanding as of June 30, 2016. On December 9, 2013, the Company issued a convertible promissory note to CareBourn Capital in the principal amount of $5,000 with an interest rate of 8% per annum due on June 9, 2014. 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. During the quarter ended December 31, 2014, CareBourn sold this note to Booski Consulting, an unaffiliated third party, which converted $2,600 in principal on the note leaving a balance due of $2,400 at December 31, 2015. During the six month period ended June 30, 2016, $1,763 of this note was converted to 35,260,938 shares of common stock at $0.00005 per share leaving a balance due on the note at that date of $637. A $2,769 decrease in derivative liability was recorded as a result of the conversions. In January 2014, the Company issued a total of $10,000 in convertible promissory notes to CareBourn Capital with an interest rate of 8% per annum due in July 2014. These notes are convertible by the holder at any time at 45% of the average of the three lowest trading prices in the ten trading days before the conversion. During the year ended December 31, 2014 the holder converted $5,000 of these notes leaving a balance due of $5,000 at both December 31, 2015 and June 30, 2016, respectively. On February 18, 2014, the Company issued $62,500 in a convertible promissory note to CareBourn Capital with an interest rate of 8% per annum due in August 2014. 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. During the year ended December 31, 2014 the holder converted $4,590 in principal on these notes leaving a balance due of $57,910 at December 31, 2014. An $8,900 decrease in derivative liability was recorded as a result of these conversions. The remaining balance of the note after conversions was $57,910 at December 31, 2014. During the year ended December 31, 2015, a total of $55,306 in principal on these notes was converted to stock leaving a balance due of $2,604 at December 31, 2015. During the six months ended June 30, 2016 the remaining balance of $2,604 in principal and $5 in interest was converted to 65,096,545 shares of common stock at $0.00004 per share. A $5,288 decrease in derivative liability was recorded as a result of the conversions and the principal balance due on the note was $0 as of June 30, 2016. On April 7, 2014, the Company issued a convertible promissory note to Adar Bays in the principal amount of $37,000 with an interest rate of 8% per annum due on April 1, 2015. The note is convertible by the holder after 180 days at 50% of the lowest closing bid price in the ten trading days before the conversion. During the year ended December 31, 2014 the holder converted $12,004 in principal on these notes leaving a balance due of $24,996 as of December 31, 2014. During the year ended December 31, 2015, a total of $4,543 in principal on these notes was converted leaving a balance due on this note of $20,453 at that date. During the six month period ended June 30, 2016 $2,150 in principal was converted on this note to 43,000,000 shares of common stock at $0.00005 per share leaving a balance due on the note at June 30, 2016 of $18,303. A $3,377 decrease in derivative liability was recorded as a result of the conversions. On April 17, 2014, the Company issued a convertible promissory note to Beaufort Capital in the principal amount of $25,000 with an interest rate of 10% per annum due on October 17, 2014. The note is convertible by the holder after 180 days at 60% of the lowest closing bid price in the twenty trading days before the conversion. During the year ended December 31, 2014, $10,345 of these notes were converted leaving a balance due of $14,655 as of December 31, 2015 and June 30, 2016, respectively. On July 15, 2014, the Company issued a convertible promissory note to Gregory Galanis in the principal amount of $13,500 with an interest rate of 8% per annum due on April 15, 2015, in exchange for $13,500 in debt owed Mr. Galanis for services rendered to the Company. The note is convertible by the holder after 180 days at 45% of the lowest closing bid price in the ninety trading days before the conversion. The entire balance of this note remained outstanding at December 31, 2015 and June 30, 2016, respectively. On September 1, 2014, the Company issued a convertible promissory note to Cresthill Associates in the principal amount of $12,500 with an interest rate of 8% per annum due on July 1, 2015, in exchange for $12,500 in debt owed Cresthill for services rendered to the Company. The note is convertible by the holder after 180 days at 45% of the lowest closing bid price in the thirty trading days before the conversion and the entire amount was outstanding at December 31, 2014. In the year ended December 31, 2015, the entire balance of this note was sold to Codes Capital, which converted a total of $1,763 in principal on these notes leaving a balance due of $10,737 as of both December 31, 2015 and June 30, 2016, respectively. On October 9, 2014, the Company issued a convertible promissory note to LG Funding in the principal amount of $26,500 with an interest rate of 8% per annum due on October 9, 2015. The note is convertible by the holder after 180 days at 50% of the lowest closing bid price in the ten trading days before the conversion. The entire balance of this note remained outstanding at December 31, 2015. During the six month period ended June 30, 2016 $3,300 in principal was converted on this note to 70,364,600 shares of common stock at $0.00005 per share leaving a balance due on the note at June 30, 2016 of $23,200. A $5,183 decrease in derivative liability was recorded as a result of the conversions. On November 3, 2014, the Company issued a convertible promissory note to Beaufort Capital in the principal amount of $12,500 due on May 3, 2015 with an interest rate of 5% per annum, which accrues only in the event of a default and only from such default date until the note is paid in full. The note is convertible by the holder after 180 days at 50% of the lowest closing bid price in the ten trading days before the conversion. The entire balance of this note remained outstanding at December 31, 2015 and June 30, 2016, respectively. On February 9, 2015 the Company issued a convertible promissory note to CareBourn Capital in the principal amount of $73,000 due on December 27, 2015 with an interest rate of 12% per annum. The note is convertible by the holder after 180 days at 40% of the three lowest closing bid prices in the ten trading days before the conversion. The entire balance of this note remained outstanding at December 31, 2015 and June 30, 2016, respectively. On April 1, 2015, the Company issued a convertible promissory note to SoFran, LLC in the principal amount of $50,000 due on January 1, 2015 with an interest rate of 12% per annum. This note was issued as part of a consulting contract entered into with SoFran for services to be rendered in connection with the Companys plans to set up a national franchising program. In addition to this note, SoFran was paid $10,000 in April 2015 and is due an additional $5,000. Certain future payments totaling $35,000 may be due to SoFran under the contract upon them reaching certain performance benchmarks. The note is convertible by the holder after 180 days at 40% of the three lowest closing bid prices in the ten trading days before the conversion. The entire balance of this note remained outstanding at December 31, 2015 and June 30, 2016, respectively. On April 14, 2015, LG Capital Funding funded a convertible promissory note in the principal amount of $26,500 that was issued on October 9, 2014 and secured at that time by a note payable to the Company with like terms. This note is due on October 9, 2015 with an interest rate of 8% per annum. The note is convertible by the holder at 50% of the lowest closing bid price in the ten trading days before the conversion. The entire balance of this note remained outstanding at December 31, 2015 and June 30, 2016, respectively. On May 5, 2015 the Company issued a convertible promissory note to Cresthill Associates in the principal amount of $16,500 due on November 5, 2015 with an interest rate of 8% per annum, in exchange for amounts payable to Cresthill for services rendered. The note is convertible by the holder after 180 days at 45% of the lowest last sales price in the thirty trading days before the conversion. The entire balance of this note remained outstanding at December 31, 2015 and June 30, 2016, respectively. On May 27, 2015 the Company issued a convertible promissory note to CareBourn Capital in the principal amount of $10,500 due on February 27, 2016 with an interest rate of 12% per annum. Debt issuance costs of $3,000 were recorded for net proceeds to the Company of $7,500. The note is convertible by the holder after 180 days at 40% of the three lowest closing bid prices in the ninety trading days before the conversion. The entire balance of this note remained outstanding at December 31, 2015 and June 30, 2016, respectively. On August 5, 2015 the Company issued a convertible promissory note to Cresthill Associates in the principal amount of $7,500 due on February 5, 2016 with an interest rate of 8% per annum, in exchange for amounts payable to Cresthill for services rendered. The note is convertible by the holder after 180 days at 45% of the lowest last sales price in the thirty trading days before the conversion. The entire balance of this note remained outstanding at December 31, 2015 and June 30, 2016, respectively. On July 20, 2015 the Company issued a convertible promissory note to CareBourn Capital in the principal amount of $15,500 due on April 20, 2016 with an interest rate of 12% per annum. Debt issuance costs of $3,000 were recorded for net proceeds to the Company of $12,500. The note is convertible by the holder after 180 days at 40% of the three lowest closing bid prices in the ninety trading days before the conversion. The entire balance of this note remained outstanding at December 31, 2015 and June 30, 2016, respectively. On July 31, 2015 the Company issued a convertible promissory note to Gulfstream 1998 Irrevocable Trust in the principal amount of $2,500 due on July 31, 2016 with an interest rate of 8% per annum. 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. The entire balance of this note remained outstanding at December 31, 2015 and June 30, 2016, respectively. On November 16, 2015 the Company issued a convertible promissory note to Cresthill Associates in the principal amount of $7,500 due on August 16, 2016 with an interest rate of 8% per annum in exchange for amounts payable to Cresthill for services rendered. The note is convertible by the holder after 180 days at 45% of the lowest last sales price in the thirty trading days before the conversion. The entire balance of this note remained outstanding at December 31, 2015 and June 30, 2016, respectively. On March 4, 2016 the Company issued a convertible promissory note to CareBourn Capital in the principal amount of $33,000 due on April 20, 2016 with an interest rate of 12% per annum. Debt issuance costs of $3,000 were recorded for net proceeds to the Company of $30,000. The note is convertible by the holder after 90 days at 40% of the lowest closing bid price in the ninety trading days before the conversion. The entire balance of this note remained outstanding at December 31, 2015 and June 30, 2016, respectively. Total interest expense on these notes was $17,839 for the six months ended June 30, 2016. A summary of convertible notes payable as of June 30, 2016 is as follows: Face Value Balances 12/31/15 Issuance of new convertible notes Amortization of discount on convertible Notes Debenture conversions & payments six months ended 6/30/16 Balances 6/30/16 Notes outstanding at 12/31/2015 $ 319,384 - - $ (14,184 ) $ 305,200 2016 note issuances - $ 33,000 - - 33,000 Note discount (61,100 ) $ 73,950 - 12,850 Total $ 319,384 $ 28,100 $ 73,950 $ (14,184 ) $ 351,050 |
DERIVATIVE LIABILITY
DERIVATIVE LIABILITY | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 8. DERIVATIVE LIABILITY | The Company has determined that the conversion features of certain of its notes represent an embedded derivative since the notes are convertible into a variable number of shares upon conversion. Accordingly, they are not considered to be conventional debt under EITF 00-19 and the embedded conversion feature must be bifurcated from the debt host and accounted for as a derivative liability. The fair value of this derivative instrument has been recorded as a liability on the balance sheet with the corresponding amount recorded as a discount to the notes. Such discount will be accreted from the commencing date of conversion period to the maturity date of the notes. The change in the fair value of the derivative liability will be recorded in other income or expenses in the statement of operations at the end of each period, with the offset to the derivative liability on the balance sheet. The beneficial conversion feature included in the notes that became convertible during the six months ended June 30, 2016 resulted in initial note discounts of $61,100 and an initial loss on the valuation of the derivative liabilities of $89,175 based on the initial fair value of the derivative liabilities of $150,275. The fair value of the embedded derivative liabilities for notes not in default were calculated at the conversion commencement dates utilizing the following assumptions: Note convertible date 2/5/16 3/1/15 3/4/16 5/16/16 Note amount $ 7,500 $ 13,100 $ 33,000 $ 7,500 Stock price at convertible date $ .0001 $ .0001 $ .0001 $ .0001 Expected life (years) .25 .25 .50 .22 Risk free interest rate .32 % .22 % .48 % .28 % Volatility 102 % 102 % 100 % 68.4 % Initial derivative value $ 10,477 $ 14,812 $ 54,275 $ 9,611 At June 30, 2016, the following notes remained convertible and not fully converted. All convertible notes beyond their maturity dates totaling $345,549 in principal payable are valued assuming a six month term for purposes of calculating the derivative liability. The fair value of the embedded derivative liabilities on the outstanding convertible notes was calculated at June 30, 2016 utilizing the following assumptions: Note convertible date 3/4/16 Matured Note amount $ 33,000 $ 345,549 Stock price at convertible date $ .0001 $ 0.0001 Expected life (years) .22 .50 Risk free interest rate .34 % .34 % Volatility 101 % 100 % 6/30/16 derivative value $ 54,383 $ 493,418 |
CAPITAL STOCK
CAPITAL STOCK | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 9. CAPITAL STOCK | Common Stock The Company has authorized 3,950,000,000 common shares with a par value of $0.001 per share. 2016 Common Stock Issuances During the six months ended June 30, 2016, the Company issued 213,722,083 shares of common stock upon conversion of $10,040 in principal and interest on convertible notes representing a value of $0.00005 per share. In addition, we incurred loss on conversion of certain of the shares totaling $16,617 for a total cost to the Company of $26,657. Preferred Stock The Company has authorized 50,000,000 shares of preferred stock par value $0.001. The Company authorized 100,000 Series A preferred shares and issued 96,623 Series A shares. The Series A shares have immediate voting rights equivalent to 7,000 shares of common stock for each Series A share and may be converted after a minimum one-year hold at the same rate. This gives effective control of the Company to the holders of the Series A preferred shares. The terms called for no conversion or Series A shares coming into the market from these sources until March 28, 2012 at the earliest. As of June 30, 2016 no conversion has taken place. On July 15, 2013, the board of directors of the Company authorized the creation of the Series B Convertible Preferred Stock, which consists of up to 100,000 shares of preferred stock with par value of $0.001 per share and a stated value of $1.00 per share. A total of 44,000 shares of Series B Preferred Stock were issued on the conversion of debt payable by the Company, including $40,000 to the Company's then Chief Financial Officer, Henry Fong. The Series B Convertible Preferred is convertible to common stock at 100% of the stated value divided by 45% of the lowest trading price of the Company's common stock for the 90 trading days immediately preceding the Conversion Date. The Series B Preferred Stock has voting rights on an as if converted basis on the date of any vote to come before the Company's shareholders. Effective September 22, 2014, the Board of Directors of the Company approved the issuance of 1,000 shares of Series D Preferred Stock to Mr. Ronald Heineman, our Chief Executive Officer, in consideration for services rendered to the Company and continuing to work for the Company without receiving significant payment for services and without the Company having the ability to issue shares of common stock as the Company did not have sufficient authorized but unissued shares of common stock to allow for any such issuances. As a result of the issuance of the Series D Preferred Stock shares, Mr. Heineman obtained voting rights over the Companys outstanding voting stock on September 24, 2014, which provide him the right to vote up to 51% of the total voting shares able to vote on any and all shareholder matters. As a result, Mr. Heineman will exercise majority control in determining the outcome of all corporate transactions or other matters, including the election of Directors, mergers, consolidations, the sale of all or substantially all of our assets, and also the power to prevent or cause a change in control. The interests of Mr. Heineman may differ from the interests of the other stockholders and thus result in corporate decisions that are adverse to other shareholders. Additionally, it may be impossible for shareholders to remove Mr. Heineman as an officer or Director of the Company due to the Super Majority Voting Rights. In the event Mr. Heineman is no longer acting as Chief Executive Officer of the Corporation, the shares of Series D Preferred Stock shall automatically, without any action on the part of any party, or the Corporation, be deemed cancelled in their entirety. Warrants In connection with the acquisition in 2013 of the assets of Carmelas Pizzeria, COHP, LLC and its assigns received warrants to purchase a total of 179,886 shares of the Companys common stock for a period of five years in the amounts and exercise prices as follows: 59,962 at $3.00; 59,962 at $6.00; and 59,962 at $7.50. These warrants were valued in the year ended December 31, 2013 utilizing the Black-Scholes pricing model for a total fair market value at issuance of $507,280. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Note 10. SUBSEQUENT EVENTS | During the period from July 1, 2016 to the filing of this report, the Company has issued __________ shares of common stock upon the conversion of $_______ in principal and interest on its convertible notes. In accordance with SFAS 165 (ASC 855-10) the Company has analyzed its operations subsequent to June 30, 2016 to the date these financial statements were issued, and has determined that it does not have any additional material subsequent events to disclose in these financial statements other than those reported above. |
SUMMARY OF SIGNIFICANT ACCOUN17
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Summary Of Significant Accounting Policies Policies | |
Accounting Basis | The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (GAAP accounting). The Company has adopted a December 31 year end. |
Use of Estimates and Assumptions | The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fair Value of Financial Instruments | The estimated fair value of financial instruments has been determined by the Company using available market information and appropriate methodologies; however, considerable judgment is required in interpreting information necessary to develop these estimates. Accordingly, the Companys estimates of fair values are not necessarily indicative of the amounts that the Company could realize in a current market exchange. The fair values of cash and cash equivalents, accounts receivable, inventory, deferred charges, accounts payable and accrued expenses, and notes payable approximate their carrying amounts because of the short maturities of these instruments. The fair values of notes and loans payable to non-related parties approximate their carrying values because of the short maturities of these instruments. The fair value of long-term debt to non-related parties approximates carrying values, net of discounts applied, based on market rates currently available to the Company. Fair value measurements are determined under a three-level hierarchy for fair value measurements that prioritizes the inputs to valuation techniques used to measure fair value, distinguishing between market participant assumptions developed based on market data obtained from sources independent of the reporting entity (observable inputs) and the reporting entitys own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). Fair value is the price that would be received to sell an asset or would be paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. In determining fair value, the Company primarily uses prices and other relevant information generated by market transactions involving identical or comparable assets (market approach). The Company also considers the impact of a significant decrease in volume and level of activity for an asset or liability when compared with normal activity to identify transactions that are not orderly. The highest priority is given to unadjusted quoted prices in active markets for identical assets (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Securities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The three hierarchy levels are defined as follows: Level 1 Quoted prices in active markets that is unadjusted and accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets and liabilities in active markets or financial instruments for which significant inputs are observable, either directly or indirectly; Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. The Company has determined that its derivative liabilities fall under Level 2. Derivative liabilities were $547,802 and $572,565 at June 30, 2016 and December 31, 2015, respectively. Credit risk adjustments are applied to reflect the Companys own credit risk when valuing all liabilities measured at fair value. The methodology is consistent with that applied in developing counterparty credit risk adjustments, but incorporates the Companys own credit risk as observed in the credit default swap market. |
Income Taxes | The Company has elected to be taxed as a C corporation. Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized. |
Basic Income (Loss) Per Share | Basic income (loss) per share is calculated by dividing the Companys net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Companys net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There were warrants outstanding convertible into 179,886 shares of common stock at June 30, 2016. Basic and diluted loss per share was the same for each period presented as the inclusion of all potential common shares outstanding would have been anti-dilutive. |
Dividends | The Company has not adopted any policy regarding payment of dividends. No dividends have been paid during any of the periods shown. |
Impairment of Long-Lived Assets | The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or the fair value less costs to sell. |
Advertising Costs | The Companys policy regarding advertising is to expense advertising when incurred. The Company incurred advertising expense of $16,247 and $9,173 during the six month periods ended June 30, 2016 and 2015, respectively. |
Property and Equipment | Property and equipment is stated at historical cost less accumulated depreciation. Depreciation is provided using the straight-line method over the three to five year estimated useful lives of the assets. Depreciation expense totaled $10,691 and $12,450 for the six month periods ended June 30, 2016 and 2015, respectively. |
Stock-Based Compensation | Stock-based compensation is accounted for at fair value in accordance with ASC 718. To date, the Company has not adopted a stock option plan and has not granted any stock options. During the six months ended June 30, 2016, the Company did not issue any stock-based payments to its employees. |
Accounting Pronouncements | No accounting standards or interpretations issued or recently adopted are expected to have a material impact on the Companys financial position, operations or cash flows. |
Notes Payable - Related Parti18
Notes Payable - Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Notes Payable - Related Parties Tables | |
Summary of activity | The activity for the six month period ended June 30, 2016 is as follows: June 30, 2016 Beginning balance at December 31, 2015 $ 483,932 Advances, net 100,455 Balance, June 30, 2016 $ 584,387 |
Convertible Notes Payable (Tabl
Convertible Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Convertible Notes Payable Tables | |
Summary of debentures payable | A summary of convertible notes payable as of June 30, 2016 is as follows: Face Value Balances 12/31/15 Issuance of new convertible notes Amortization of discount on convertible Notes Debenture conversions & payments six months ended 6/30/16 Balances 6/30/16 Notes outstanding at 12/31/2015 $ 319,384 - - $ (14,184 ) $ 305,200 2016 note issuances - $ 33,000 - - 33,000 Note discount (61,100 ) $ 73,950 - 12,850 Total $ 319,384 $ 28,100 $ 73,950 $ (14,184 ) $ 351,050 |
Derivative Liability (Tables)
Derivative Liability (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Derivative Liability Tables | |
Fair value of the embedded derivative liabilities | The beneficial conversion feature included in the notes that became convertible during the six months ended June 30, 2016 resulted in initial note discounts of $61,100 and an initial loss on the valuation of the derivative liabilities of $89,175 based on the initial fair value of the derivative liabilities of $150,275. The fair value of the embedded derivative liabilities for notes not in default were calculated at the conversion commencement dates utilizing the following assumptions: Note convertible date 2/5/16 3/1/15 3/4/16 5/16/16 Note amount $ 7,500 $ 13,100 $ 33,000 $ 7,500 Stock price at convertible date $ .0001 $ .0001 $ .0001 $ .0001 Expected life (years) .25 .25 .50 .22 Risk free interest rate .32 % .22 % .48 % .28 % Volatility 102 % 102 % 100 % 68.4 % Initial derivative value $ 10,477 $ 14,812 $ 54,275 $ 9,611 At June 30, 2016, the following notes remained convertible and not fully converted. All convertible notes beyond their maturity dates totaling $345,549 in principal payable are valued assuming a six month term for purposes of calculating the derivative liability. The fair value of the embedded derivative liabilities on the outstanding convertible notes was calculated at June 30, 2016 utilizing the following assumptions: Note convertible date 3/4/16 Matured Note amount $ 33,000 $ 345,549 Stock price at convertible date $ .0001 $ 0.0001 Expected life (years) .22 .50 Risk free interest rate .34 % .34 % Volatility 101 % 100 % 6/30/16 derivative value $ 54,383 $ 493,418 |
Summary Of Significant Accoun21
Summary Of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Summary Of Significant Accounting Policies Details Narrative | |||||
Derivative Liability | $ 547,802 | $ 547,802 | $ 572,565 | ||
Common stock warrants purchase, outstanding | 179,886 | 179,886 | |||
Advertising expense | $ 8,784 | $ 4,304 | $ 16,247 | $ 9,173 | |
Depreciation expense | $ 5,536 | $ 6,353 | $ 10,691 | $ 12,450 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Notes Payable Details Narrative | |
Total principal balance of notes payable | $ 81,000 |
Interest expense | 11,992 |
Accrued interest repaid | 17 |
Notes repaid | $ 300 |
Notes Payable - Related Parti23
Notes Payable - Related Parties (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Notes Payable - Related Parties Details | |
Beginning balance | $ 483,932 |
Advances, net | 100,455 |
Ending balance | $ 584,387 |
Convertible Notes Payable (Deta
Convertible Notes Payable (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Beginning balance | $ 319,384 |
Issuance of new convertible notes | 28,100 |
Amortization of discount on convertible notes | 73,950 |
Debenture conversions & payments six months ended 6/30/16 | (14,184) |
Ending balance | 351,050 |
Notes Outstanding [Member] | |
Beginning balance | 319,384 |
Issuance of new convertible notes | |
Amortization of discount on convertible notes | |
Debenture conversions & payments six months ended 6/30/16 | (14,184) |
Ending balance | 305,200 |
2016 note issuances [Member] | |
Beginning balance | |
Issuance of new convertible notes | 33,000 |
Amortization of discount on convertible notes | |
Debenture conversions & payments six months ended 6/30/16 | |
Ending balance | 33,000 |
Note discount [Member] | |
Issuance of new convertible notes | (61,100) |
Amortization of discount on convertible notes | 73,950 |
Debenture conversions & payments six months ended 6/30/16 | |
Ending balance | $ 12,850 |
Convertible Notes Payable (De25
Convertible Notes Payable (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Decrease in derivative liability | $ (31,177) | $ 511,171 | $ (113,938) | $ 612,600 | |
Interest accrued on convertible notes | 17,839 | $ 17,839 | |||
CareBourn Capital [Member] | |||||
Remaining balance after conversion | 9,000 | 9,000 | |||
Principal balance of convertible notes payable | $ 1,763 | $ 1,763 | $ 2,600 | ||
Convertible common stock, Shares | 35,260,938 | 35,260,938 | |||
Conversion price | $ 0.00005 | $ 0.00005 | |||
Decrease in derivative liability | $ 2,769 | ||||
Principal balance due on note | $ 637 | 637 | 2,400 | ||
CareBourn Capital One [Member] | |||||
Principal balance of convertible notes payable | $ 5,000 | $ 5,000 | 5,000 | ||
Convertible common stock, Shares | 65,096,545 | 65,096,545 | |||
Conversion price | $ 0.00004 | $ 0.00004 | |||
Loss on conversion of shares | $ 0 | ||||
Decrease in derivative liability | 5,288 | ||||
Accrued interest | $ 5 | 5 | |||
Principal balance due on note | 2,604 | 2,604 | 2,604 | ||
Adar Bays [Member] | |||||
Principal balance of convertible notes payable | $ 2,150 | $ 2,150 | |||
Convertible common stock, Shares | 43,000,000 | 43,000,000 | |||
Conversion price | $ 0.00005 | $ 0.00005 | |||
Loss on conversion of shares | $ 18,303 | ||||
Decrease in derivative liability | 3,377 | ||||
Beaufort Capital [Member] | |||||
Principal balance due on note | $ 14,655 | 14,655 | 14,655 | ||
Cresthill Associates [Member] | |||||
Remaining balance after conversion | 5,417 | 5,417 | |||
Principal balance of convertible notes payable | 1,763 | 1,763 | |||
Principal balance due on note | 10,737 | 10,737 | |||
Cresthill Associates [Member] | |||||
Remaining balance after conversion | 0 | ||||
Principal balance of convertible notes payable | 1,763 | ||||
Principal balance due on note | $ 10,737 | ||||
LG Funding [Member] | |||||
Principal balance of convertible notes payable | $ 3,300 | $ 3,300 | |||
Convertible common stock, Shares | 70,364,600 | 70,364,600 | |||
Conversion price | $ 0.00005 | $ 0.00005 | |||
Loss on conversion of shares | $ 23,200 | ||||
Decrease in derivative liability | $ 5,183 |
Derivative Liability (Details)
Derivative Liability (Details) - Conversion Commencing Dates [Member] | 6 Months Ended |
Jun. 30, 2016USD ($)$ / shares | |
Conversion on 2/5/16 [Member] | |
Note amount | $ 7,500 |
Stock price at convertible date | $ / shares | $ .0001 |
Expected life (years) | 3 months |
Risk free interest rate | 0.32% |
Volatility | 102.00% |
Initial derivative value | $ 10,477 |
Conversion on 3/1/15 [Member] | |
Note amount | $ 13,100 |
Stock price at convertible date | $ / shares | $ .0001 |
Expected life (years) | 3 months |
Risk free interest rate | 0.22% |
Volatility | 102.00% |
Initial derivative value | $ 14,812 |
Conversion on 3/4/16 [Member] | |
Note amount | $ 33,000 |
Stock price at convertible date | $ / shares | $ 0.0001 |
Expected life (years) | 6 months |
Risk free interest rate | 0.48% |
Volatility | 100.00% |
Initial derivative value | $ 54,275 |
Conversion on 5/16/16 [Member] | |
Note amount | $ 7,500 |
Stock price at convertible date | $ / shares | $ 0.0001 |
Expected life (years) | 2 months 19 days |
Risk free interest rate | 0.28% |
Volatility | 68.40% |
Initial derivative value | $ 9,611 |
Derivative Liability (Details 1
Derivative Liability (Details 1) | 6 Months Ended |
Jun. 30, 2016USD ($)$ / shares | |
Conversion on 3/4/15 [Member] | |
Note amount | $ 33,000 |
Stock price at convertible date | $ / shares | $ 0.0001 |
Expected life (years) | 2 months 19 days |
Risk free interest rate | 0.34% |
Volatility | 101.00% |
Initial derivative value | $ 54,383 |
Matured [Member] | |
Note amount | $ 345,549 |
Stock price at convertible date | $ / shares | $ 0.0001 |
Expected life (years) | 6 months |
Risk free interest rate | 0.34% |
Volatility | 100.00% |
Initial derivative value | $ 493,418 |
Derivative Liability (Details N
Derivative Liability (Details Narrative) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Derivative Liability Details Narrative | |
Initial note discounts | $ 61,100 |
Initial loss on the valuation of the derivative liabilities | 89,175 |
Initial fair value of the derivative liabilities | $ 150,275 |
Capital Stock (Details Narrativ
Capital Stock (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Capital Stock Details Narrative | ||
Common stock issued upon conversion, shares | 213,722,083 | |
Common stock issued for covertible notes and accrued interest | $ 10,040 | $ 17,176 |
Conversion price | $ 0.00005 | |
Beneficial conversion feature recroded for convertible debt | $ 16,617 | |
Loss on conversion of common stock | $ 26,657 |