| 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 |
