Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jan. 15, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | DIRECTVIEW HOLDINGS INC | |
Entity Central Index Key | 1,441,769 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 16,010,436 | |
Trading Symbol | DIRV | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash | $ 228,229 | $ 58,449 |
Accounts Receivable - net | 471,568 | 85,455 |
Inventory | 87,685 | 29,953 |
Other Current Assets | 64,372 | 52,556 |
Total Current Assets | 851,854 | 226,413 |
PROPERTY AND EQUIPMENT - Net | 161,310 | |
Goodwill | 2,095,258 | |
Intangible Assets, net | 650,124 | |
OTHER ASSETS | 19,790 | 26,167 |
Total Assets | 3,778,336 | 252,580 |
CURRENT LIABILITIES: | ||
Convertible Promissory Notes, net of debt discounts of $194,467 and $309,302 | 2,662,381 | 2,492,573 |
Short Term Advances | 146,015 | 146,015 |
Note Payable | 2,070,549 | 116,792 |
Accounts Payable | 264,172 | 270,516 |
Credit Card Payable | 78,067 | |
Accrued Expenses | 2,451,739 | 2,346,521 |
Line of Credit | 260,293 | |
Stock Payable | 25,000 | |
Deferred Revenue | 172,841 | 38,500 |
Due to Related Parties | 1,814 | 1,814 |
Note Payable - related party, current | 52,000 | |
Derivative Liability | 5,070,015 | 4,956,637 |
Total Current Liabilities | 13,254,886 | 10,369,368 |
Note Payable-related party, net of current portion | 778,000 | |
Total Liabilities | 14,032,886 | 10,369,368 |
Commitments and Contingencies (see Note 18) | ||
STOCKHOLDERS' DEFICIT: | ||
Preferred Stock ($0.0001 Par Value; 5,000,000 Shares Authorized; Series A (51 shares designated 51 shares issued and outstanding as of June 30, 2017 and 0 shares issued and outstanding as of December 31, 2016) | ||
Common Stock ($0.0001 Par Value; 1,000,000,000 Shares Authorized; 5,829,441 and 2,134,155 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively) | 583 | 213 |
Additional Paid-in Capital | 18,173,846 | 17,729,875 |
Accumulated Deficit | (28,457,764) | (27,844,136) |
Total DirectView Holdings, Inc. Stockholders' Deficit | (10,283,335) | (10,114,048) |
Non-Controlling Interest in Subsidiary | 28,785 | (2,740) |
Total Stockholders' Deficit | (10,254,550) | (10,116,788) |
Total Liabilities and Stockholders' Deficit | $ 3,778,336 | $ 252,580 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Convertible promissory notes, debt discounts | $ 194,467 | $ 309,302 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized shares | 5,000,000 | 5,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized shares | 1,000,000,000 | 1,000,000,000 |
Common stock, issued shares | 5,829,441 | 2,134,155 |
Common stock, outstanding shares | 5,829,441 | 2,134,155 |
Series A Preferred Stock [Member] | ||
Preferred Stock, shares designated | 51 | 51 |
Preferred stock, issued shares | 51 | 0 |
Preferred stock, outstanding shares | 51 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
NET SALES: | ||||
Sales of Product | $ 1,025,865 | $ 54,540 | $ 1,084,382 | $ 216,807 |
Services | 205,626 | 48,284 | 275,026 | 64,681 |
Total Net Sales | 1,231,491 | 102,824 | 1,359,408 | 281,488 |
COST OF SALES: | ||||
Cost of Product | 469,797 | 31,631 | 499,844 | 112,136 |
Cost of Services | 111,620 | 27,147 | 125,415 | 62,044 |
Total Cost of Sales | 581,417 | 58,778 | 625,259 | 174,180 |
GROSS PROFIT | 650,074 | 44,046 | 734,149 | 107,308 |
OPERATING EXPENSES: | ||||
Marketing and Public Relations | 1,036 | 25,615 | 3,474 | 122,209 |
Rent | 22,742 | 19,380 | 23,387 | 40,560 |
Depreciation | 42,186 | 3,363 | 42,186 | 6,725 |
Amortization | 65,824 | 65,824 | ||
Bad Debt Expense | 450 | 450 | ||
Research and Development | 2,000 | 4,600 | 5,700 | 10,154 |
Compensation and Related Taxes | 210,521 | 110,389 | 321,351 | 224,590 |
Other Selling, General and Administrative | 194,761 | 181,221 | 323,122 | 435,359 |
Total Operating Expenses | 539,070 | 345,018 | 785,044 | 840,047 |
INCOME (LOSS) FROM OPERATIONS | 111,004 | (300,972) | (50,895) | (732,739) |
OTHER INCOME (EXPENSES): | ||||
Gain on conversion of related party loan | 4,506 | 4,506 | ||
Loss on Change in Fair Value of Derivative Liabilities | (2,496,964) | (1,851,221) | (27,608) | (38,396) |
Initial Derivative Expense | (133,804) | (46,878) | (237,085) | (197,508) |
Interest Income | 16 | 16 | ||
Amortization of Debt Discount | (78,181) | (523,536) | (231,731) | (1,079,285) |
Amortization of Deferred Financing Costs | (1,709) | (8,417) | ||
Other Income | 129,216 | |||
Interest Expense | (77,264) | (94,838) | (160,090) | (195,140) |
Total Other Expense | (2,783,416) | (2,516,457) | (531,209) | (1,510,313) |
NET LOSS | (2,672,412) | (2,817,429) | (582,104) | (2,243,052) |
Net (Income) Loss Attributable to Non-Controlling Interest | (14,131) | 3,572 | (31,524) | 2,990 |
Net Loss Attributable to DirectView Holdings, Inc. | $ (2,686,543) | $ (2,813,857) | $ (613,628) | $ (2,240,062) |
NET (LOSS) PER COMMON SHARE: | ||||
Basic and Diluted | $ (0.52) | $ (28.91) | $ (0.13) | $ (26.07) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||
Basic and Diluted | 5,210,458 | 97,346 | 4,768,248 | 85,930 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (582,104) | $ (2,243,052) |
Adjustments to reconcile net loss to net cash Used in operating activities: | ||
Depreciation and amortization | 108,010 | 6,725 |
Stock compensation expense | 25,000 | |
Loss on change in fair value of derivative liabilities | 27,608 | 38,396 |
Initial derivative liability expense | 237,085 | 197,508 |
Amortization of debt discount | 231,731 | 1,079,285 |
Amortization of deferred financing costs | 3,416 | 4,188 |
Amortization of original issue discount | 27,672 | 50,481 |
(Increase) Decrease in: | ||
Accounts receivable | (184,267) | (19,011) |
Other current assets | 3,556 | |
Other assets | (8,974) | (50,582) |
Increase (Decrease) in: | ||
Accounts payable | (91,573) | 18,781 |
Accrued expenses | 97,587 | 111,733 |
Net Cash Used in Operating Activities | (157,074) | (805,548) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of company | 59,389 | |
Net Cash Provided by Investing Activities | 59,389 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments of note payable | (29,139) | (9,900) |
Proceeds from convertible notes payable | 210,000 | 585,144 |
Payments of convertible notes payable | (54,989) | |
Proceeds from notes payable | 59,000 | |
Proceeds from line of credit | 30,000 | |
Repayments to line of credit | (2,396) | |
Payments to related parties | (8,334) | |
Net Cash Provided by Financing Activities | 267,465 | 511,921 |
Net (Decrease) Increase in Cash | 169,780 | (293,627) |
Cash - Beginning of Period | 58,449 | 330,015 |
Cash - End of Period | 228,229 | 36,388 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Interest | 12,941 | |
Income Taxes | ||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Issuance of common stock (in connection with conversion of convertible promissory notes and accrued interest) | 170,831 | 324,895 |
Initial recognition of derivative liability as debt discount | 237,085 | 554,301 |
Reclassification of derivative liability to additional paid in capital (in connection with the conversion of convertible promissory notes and accrued interest) | $ 279,209 | $ 427,099 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | NOTE 1 – BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization DirectView Holdings, Inc., (the “Company”), was incorporated in the State of Delaware on October 2, 2006. On July 6, 2012 the Company changed its domicile from Delaware and incorporated in the State of Nevada. The Company has the following six subsidiaries: DirectView Video Technologies Inc. (“DVVT”), DirectView Security Systems Inc. (“DVSS”), Ralston Communication Services Inc. (“RCI”), Meeting Technologies Inc (“MT”), Virtual Surveillance (“VS”), and Apex CCTV, LLC (“APEX”). The Company is a full-service provider of teleconferencing services to businesses and organizations. The Company’s conferencing services enable its clients to cost-effectively conduct remote meetings by linking participants in geographically dispersed locations. The Company’s focus is to provide high value-added conferencing services to organizations such as professional service firms, investment banks, high tech companies, law firms, investor relations firms, and other domestic and multinational companies. The Company is also a provider of the latest technologies in surveillance systems, digital video recording and services. The systems provide onsite and remote video and audio surveillance. Acquisition Effective April 20, 2017 (the “Effective Date”), the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with Video Surveillance Limited Liability Company, a Texas limited liability company with an assumed name of Virtual Surveillance (“VS”), Apex CCTV Limited Liability Company, a Texas limited liability company formerly known as Vaultronics (“APEX” and together with VS, the “Acquisition Companies”), and Mark D. Harris the sole member and equity owner of each of the Acquisition Companies (the “Seller”). According to the terms of the Purchase Agreement, on the Effective Date, the Seller transferred to the Company all of the issued and outstanding equity interests of each of the Acquisition Companies. Virtual Surveillance, LLC. was incorporated in the State of Texas on February 26, 2015. VS is an integrator of security products and low voltage technology such as security cameras, access control, structure cabling, Wi-Fi and digital signage. VS’s services enable its clients to cost-effectively have one vendor that can provide services across their geographically dispersed locations. VS’s primary focus is to provide high value-added commercial security products and services to manufacturing, distribution, healthcare, entertainment, and a number of Fortune 500 clients in North America. Apex CCTV, LLC was incorporated in the State of Texas on February 24, 2015. Apex is a full-service provider of security products through an ecommerce website. Apex’s website allows customers to purchase commercial grade software and equipment cost-effectively. Apex markets to systems integrators, small businesses, corporations, and individuals. Apex is a provider of the latest technologies in surveillance systems, digital video recording, access control, and low voltage products. In connection with the acquisition, the Company acquired all the assets and assumed all of the liabilities of the acquired companies. Included in these liabilities is a Note Payable to a bank with a remaining balance, at the acquisition date, of $1,923,896. Per the Purchase Agreement this Note Payable to bank was to be paid in full and have a complete release of the Seller’s guarantee and collateral related to the note within 180 days of the effective date of the Purchase Agreement. In addition to the assumed assets and liabilities the Company executed a Note Payable – related party (“Note”) in the amount of $830,000. The Note Payable principal amount will be reduced by a $2,000 cash purchase price payout calculated related to the terms in the Purchase Agreement and $150,000 based on an Employment Agreement with the Seller to be paid over a three year period commencing on effective date of the Purchase Agreement. Upon delivery by the Purchaser to the Seller of the final Note payment, related to the Employment Agreement, the Note held by the Seller shall be forfeited and cancelled an no further force or effect, and the Purchaser shall have no further obligations on the Note. In an Event of Default of the Note, Purchaser shall issue to Seller convertible preferred stock convertible into common stock of the Purchaser with a fair value up to $1,000,000 (“Convertible Preferred Stock”) valued by the closing price of the Purchaser’s common stock on the day written notice of an Event of Default (as define in the Note) under the terms of the Note are delivered to the Purchaser (the “Default Notice”). The Convertible Preferred Stock may be converted solely upon an Event of Default and in the amount equal to the outstanding amount due under the Note triggering such Event of Default. The Convertible Preferred Stock shall be held by the Purchaser in escrow and shall be released within ten days of the Event of Default. As of June 30, 2017, no payments have been remitted pursuant to the Cash Payout and the Employment Agreement. The Company has not been notified of an Event of Default. No payments have been remitted pursuant to the Cash Payout and the Employment Agreement as of June 30, 2017. Furthermore, per the Purchase Agreement, in the event the acquisition companies are purchased for less than the Maximum Purchase Price upon the acquisition companies generating at least $500,000 in cash flow each year as determined by Schedule 2.03(a) in the Purchase Agreement, the Seller shall receive five percent (5%) of such cash flow up to $300,000 per year (the “Cash Flow Payments”). The Cash Flow Payments shall expire upon the earlier of (i) three years from the Effective Date, or (ii) the aggregate payment of the Purchase Price in the amount of the Maximum Purchase Price. Any payments made as cash flow payments will reduce the note Payable – related party. The fair value of the assets acquired and liabilities assumed on April 20, 2017 in the acquisition are as follows: Assets acquired: Cash $ 59,389 Accounts receivable, net of allowance for doubtful accounts 201,846 Inventory 42,381 Other current assets 15,372 Property and equipment 203,496 Goodwill 2,093,259 Intangible assets 716,933 Total assets $ 3,332,676 Liabilities assumed: Accounts payable and accrued expenses $ 58,308 Credit card payable 102,906 Deferred Revenue 184,877 Line of Credit 232,689 Note payable - related party 830,000 Note payable 1,923,896 Total Liabilities 3,332,676 Purchase price (Cash) $ 0 The estimates of fair values and the purchase price allocation is subject to change pending the finalization of the valuation of assets acquired and liabilities assumed. The following unaudited pro forma consolidated results of operations have been prepared as if the merger occurred on January 1, 2016: Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Net Revenues $ 2,561,213 $ 3,912,479 Net Loss $ (1,124,219 ) $ (4,438,937 ) Net Loss per Share $ (0.19 ) $ (2.08 ) Pro forma data does not purport to be indicative of the results that would have been obtained had these events actually occurred at the beginning of the periods presented and is not intended to be a projection of future results. Basis of Presentation The unaudited consolidated financial statements include the accounts of the Company, five wholly-owned subsidiaries, and a subsidiary with which the Company has a majority voting interest of approximately 58% (the other 42% is owned by non-controlling interests, including 12% which is owned by the Company’s CEO) as of June 30, 2017. In the preparation of the unaudited consolidated financial statements of the Company, intercompany transactions and balances are eliminated and net earnings are reduced by the portion of the net earnings of subsidiaries applicable to non-controlling interests. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by US GAAP for complete financial statements. The unaudited consolidated financial statements and notes included herein should be read in conjunction with the annual consolidated financial statements and notes for the year ended December 31, 2016 included in our Annual Report on Form 10-K filed with the SEC on April 17, 2017. In the opinion of management, all adjustments (consisting of normal recurring items) necessary to present fairly the Company’s financial position as of June 30, 2017, and the results of operations and cash flows for the six months ending June 30, 2017 have been included. The results of operations for the six months ended June 30, 2017 are not necessarily indicative of the results to be expected for the full year. All share and per share amounts have been presented to give retroactive effect to a 1 for 200 reverse stock split that occurred May 22, 2017. Use of Estimates In preparing the unaudited consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the statements of financial condition, and revenues and expenses for the years then ended. Actual results may differ significantly from those estimates. Significant estimates made by management include, but are not limited to, the allowance for doubtful accounts, deferred tax asset valuation allowance, valuation of stock-based compensation, the useful life of property and equipment, valuation of beneficial conversion features on convertible debt, valuation of intangible assets and the assumptions used to calculate derivative liabilities. Non-controlling Interests in Consolidated Financial Statements The Company follows ASC 810-10-65, “Non-controlling Interests in Consolidated Financial Statements.” This statement clarifies that a non-controlling (minority) interest in a subsidiary is an ownership interest in the entity that should be reported as equity in the unaudited consolidated financial statements. It also requires consolidated net income to include the amounts attributable to both the parent and non-controlling interest, with disclosure on the face of the unaudited consolidated income statement of the amounts attributed to the parent and to the non-controlling interest. In accordance with ASC 810-10-45-21, the losses attributable to the parent and the non-controlling interest in subsidiary may exceed their interests in the subsidiary’s equity. The excess and any further losses attributable to the parent and the non-controlling interest shall be attributed to those interests even if that attribution results in a deficit non-controlling interest balance. As of June 30, 2017 and December 31, 2016, the Company reflected a non-controlling interest of $28,785 and ($2,740) in connection with our majority-owned subsidiary, DirectView Security Systems Inc. as reflected in the accompanying unaudited consolidated balance sheets. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company places its cash with a high credit quality financial institution. The Company’s account at this institution is insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. As of June 30, 2017 and December 31, 2016, the Company had no bank balances exceeding the FDIC insurance limit. To reduce its risk associated with the failure of such financial institution, the Company evaluates at least annually the rating of the financial institution in which it holds deposits. Fair Value of Financial Instruments The Company follows FASB ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements establishes a framework for measuring fair value and expands disclosure about such fair value measurements. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions Cash and cash equivalents include money market securities that are considered to be highly liquid and easily tradable as of June 30, 2017 and December 31, 2016. These securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within our fair value hierarchy. As of June 30, 2017 and December 31, 2016 there were not any cash equivalents. In addition, FASB ASC 825-10-25 Fair Value Option expands opportunities to use fair value measurements in financial reporting and permits entities to choose to measure many financial instruments and certain other items at fair value. The Company did not elect the fair value options for any of its qualifying financial instruments. The carrying amounts reported in the balance sheet for cash, accounts receivable, accounts payable, accrued expenses, notes payable and due to related parties approximate their estimated fair market value based on the short-term maturity of these instruments. The carrying amount of the notes and convertible promissory notes approximates the estimated fair value for these financial instruments as management believes that such notes constitute substantially all of the Company’s debt and the interest payable on the notes approximates the Company’s incremental borrowing rate. Accounts Receivable The Company has a policy of reserving for questionable accounts based on its best estimate of the amount of probable credit losses in its existing accounts receivable. The Company uses specific identification of accounts to reserve possible uncollectible receivables. The Company periodically reviews its accounts receivable to determine whether an allowance is necessary based on an analysis of past due accounts and other factors that may indicate that the realization of an account may be in doubt. Account balances deemed to be uncollectible are charged to the bad debt expense after all means of collection have been exhausted and the potential for recovery is considered remote. At June 30, 2017 and December 31, 2016, management determined that an allowance was necessary which amounted to approximately $160,000 and $120,000, respectively. During the six months ended June 30, 2017 and 2016 the Company recognized $0 and $450 respectively of write-offs related to uncollectible accounts receivable. Advertising Advertising is expensed as incurred. Advertising expense for the six months ended June 30, 2017 and 2016 was $3,474 and $122,209 respectively. Shipping costs Shipping costs are included in cost of sales for VS and Apex and shipping costs are included in other selling, general and administrative expenses for DVVS and were deemed to be not material for the six months ended June 30, 2017 and 2016, respectively. Inventory Inventory, consisting of finished goods related to our products is stated at the lower of cost or net realizable value utilizing the first-in, first-out method. The Company acquires inventory for specific installation jobs. As a result, the Company generally orders inventory only as needed for installations. Due to the anticipation of customers’ needs the Company purchased inventory items and had $87,685 and $29,953 in inventory as of June 30, 2017 and December 31, 2016, respectively. Property and Equipment Property and equipment is carried at cost. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life or the term of the lease. Impairment of Long-Lived Assets Long-Lived Assets of the Company are reviewed for impairment whenever events or circumstances indicate that the carrying amount of assets may not be recoverable, pursuant to guidance established in ASC 360-10-35-15, “Impairment or Disposal of Long-Lived Assets” Intangible Assets The Company amortizes identifiable intangible assets over their useful lives on a straight line basis. I ncome Taxes Income taxes are accounted for under the asset and liability method as prescribed by ASC Topic 740: Income Taxes (“ASC 740”). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities, and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance, when in the Company’s opinion it is likely that some portion or the entire deferred tax asset will not be realized. Pursuant to ASC Topic 740-10: Income Taxes related to the accounting for uncertainty in income taxes, the evaluation of a tax position is a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likelihood of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. The accounting standard also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures, and transition. The adoption had no effect on the Company’s consolidated financial statements. Stock Based Compensation Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the consolidated financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the service period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date. The Company recorded stock based compensation expense of $0 during the six months ended June 30, 2017 and 2016. Loan Costs The Company has early adopted ASU 2015-3 “Interest – Imputation of Interest” - Simplifying the Presentation of Debt Issuance Costs. The loan costs are recorded as a debt discount and amortized to interest expense over the terms of the note payable. Revenue recognition The Company follows the guidance of the FASB ASC 605-10-S99 “Revenue Recognition Overall – SEC Materials. The Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectibility is reasonably assured. When a customer order contains multiple items such as hardware, software, and services which are delivered at varying times, the Company determines whether the delivered items can be considered separate units of accounting. Delivered items should be considered separate units of accounting if delivered items have value to the customer on a standalone basis, there is objective and reliable evidence of the fair value of undelivered items, and if delivery of undelivered items is probable and substantially in the Company’s control. Sales are recorded net of discounts and discounts are determined to be immaterial. The following policies reflect specific criteria for the various revenue streams of the Company: Revenue is recognized upon completion of conferencing services. The Company generally does not charge up-front fees and bills its customers based on usage. Revenue for video equipment sales and security surveillance equipment sales is recognized upon delivery and installation. Due to the nature of the Company’s business it is not practicable to return products therefore the Company has determined that it is not necessary to provide a provision for sales returns and allowances. The Company’s manufacturers provide the highest quality products available. If there is a defect in a product related to materials or workmanship the Company extends the manufacturer’s warranty to its customers. To date this process has never occurred. Therefore no warranty liability is recorded. Revenue from periodic maintenance agreements is generally recognized ratably over the respective maintenance periods provided no significant obligations remain and collectibility of the related receivable is probable. Cost of Sales Cost of sales includes cost of products and cost of service. Product cost includes the cost of products and delivery costs. Cost of services includes labor and fuel expenses. Concentrations of Credit Risk and Major Customers Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. The Company places its cash with high credit quality financial institutions. Almost all of the Company’s sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk. During the six months ended June 30, 2017, one customer accounted for 35% of revenues. During the six months ended June 30, 2016, three customers accounted for 50% of revenues. The following is a list of percentage of revenue generated by the three customers: Customer 1 10 % Customer 2 11 % Customer 3 29 % Total 50 % As of June 30, 2017, three customers accounted for 89% of total accounts receivable. The following is a list of percentage of accounts receivable owed by the two customers: Customer 1 45 % Customer 2 33 % Customer 3 11 % Total 89 % As of December 31, 2016, three customers accounted for 39% of total accounts receivable. The following is a list of percentage of accounts receivable owed by the three customers: Customer 1 13 % Customer 2 13 % Customer 3 13 % Total 39 % Research and Development Research is planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service (hereinafter “product”) or a new process or technique (hereinafter “process”) or in bringing about a significant improvement to an existing product or process. Development is the translation of research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or use. It includes the conceptual formulation, design, and testing of product alternatives, construction of prototypes, and operation of pilot plants. It does not include routine or periodic alterations to existing products, production lines, manufacturing processes, and other on-going operations even though those alterations may represent improvements and it does not include market research or market testing activities. Per FASB ASC 730, the Company expenses research and development cost as incurred. Related Parties Parties are considered to be related to the Company if the parties that, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions. All transactions shall be recorded at fair value of the goods or services exchanged. Property purchased from a related party is recorded at the cost to the related party and any payment to or on behalf of the related party in excess of the cost is reflected as a distribution to related party. Net Income per Common Share Net income per common share is calculated in accordance with ASC Topic 260: Earnings Per Share (“ASC 260”). Basic income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. The computation of diluted net earnings per share does not include dilutive common stock equivalents in the weighted average shares outstanding as they would be anti-dilutive. At June 30, 2017 the Company had 157,897,092 share equivalents issuable pursuant to embedded conversion features. At December 31, 2016 the Company had 29,733,748 share equivalents issuable pursuant to embedded conversion features. Recent Accounting Pronouncements The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not expect the future adoption of any such pronouncements to have a significant impact on the results of operations, financial condition or cash flows, except as described below. In May 2014, the FASB issued an update (“ASU 2014-09”) Revenue from Contracts with Customers. In February 2016, the FASB issued Accounting Standards Update, Leases (Topic 842), intended to improve financial reporting about leasing transactions. The ASU affects all companies and other organizations that lease assets such as real estate, airplanes, and manufacturing equipment. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current Generally Accepted Accounting Principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the statement of assets, liabilities, and members’ equity (deficit)—the new ASU will require both types of leases to be recognized on the statement of assets, liabilities, and members’ equity (deficit). The ASU on leases will take effect for all non-public companies for fiscal years beginning after December 15, 2019. The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Going Concern Considerations
Going Concern Considerations | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern Considerations | NOTE 2 – GOING CONCERN CONSIDERATIONS The accompanying unaudited consolidated financial statements are prepared assuming the Company will continue as a going concern. At June 30, 2017, the Company had an accumulated deficit of approximately $28.5 million, a stockholders’ deficit of approximately $10 million and a working capital deficiency of approximately $12.4 million. The net cash used in operating activities for the six months ended June 30, 2017 totaled $157,074. These matters raise substantial doubt about the Company’s ability to continue as a going concern for a period of twelve months from the issue date of this report. The ability of the Company to continue as a going concern is dependent upon increasing sales and obtaining additional capital and financing. Management intends to attempt to raise funds by way of a public or private offering. While the Company believes in the viability of its strategy to increase sales volume and in its ability to raise additional funds, there can be no assurances to that effect. The Company's limited financial resources have prevented the Company from aggressively advertising its products and services to achieve consumer recognition. The unaudited consolidated financial statements do not include adjustments to reflect the possible effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 3 – INVENTORY Inventory, consists of finished goods which are stated at the lower of cost and net realizable value utilizing the first-in, first-out method. As of June 30, 2017 and December 31, 2016 the inventory balance was $87,685 and $29,953, respectively. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 4 - PROPERTY AND EQUIPMENT Property and equipment consisted of the following: Estimated life June 30, 2017 December 31, 2016 Computer Equipment 1 year $ 13,333 $ - Office Equipment 1 year 5,767 - Telephone System 1 year 9,729 - ERP Software 1 year 150,000 - Vehicles 1 year 22,667 - Furniture & Fixtures 2-3 years 2,000 2,771 Less: Accumulated depreciation (42,186 ) (2,771 ) Leasehold Improvements 2 years - 26,901 Less: Accumulated amortization - (26,901 ) $ 161,310 $ - For the six months ended June 30, 2017 and 2016, depreciation and amortization expense amounted to $42,186 and $6,725, respectively. In June 2014, the Company negotiated to lease approximately 3,000 square feet of office space in New York City and made leasehold improvements totaling $12,448. In August 2015 the Company made leasehold improvements totaling $14,453. The Company began amortizing the balance on a straight-line basis for the term of 2 years commencing in July 2014 and August 2015. In September 2016 the Company moved its office to a different floor in the same building. Consequently, the Company amortized the remainder of the leasehold improvements during September 2016. The monthly rent expense remained the same. The original monthly rent was $5,000 per month which was increased to $6,460 in November 2015. In January 2017, the Company relocated and has not entered into another lease agreement. |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 5 – INTANGIBLE ASSETS In connection with the Purchase Agreement of the Acquisition Companies (see Note 1) goodwill and other intangible assets were acquired. An independent valuation of the intangible assets, deferred revenue and lease obligations will be completed at December 31, 2017 consequently the balances may be adjusted based on the valuation. The intangible assets were estimated and are being amortized on a straight line basis over their useful lives. Intangible assets consist of the following: June 30, 2017 Useful Lives Intangible assets: Goodwill $ 2,095,258 Customer Relationships 84,867 4 years Brand 139,200 8 years Technology 175,681 1 years Non-Compete Agreements 316,200 3 years Total 2,811,206 Less: Accumulated amortization (65,824 ) 2,745,382 Amortization expense related to the intangible assets for the period of April 20, 2017 (Acquisition Date) through June 30, 2017 was $65,824. |
Line of Credit
Line of Credit | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Line of Credit | NOTE 6 – LINE OF CREDIT In connection with the Purchase Agreement of the Acquisition Companies (see Note 1) the Company assumed a $350,000 revolving line of credit (“Line of Credit”) that VS and Apex are jointly and severally liable for that expires on April 7, 2018. The Line of Credit is guaranteed by VS, Apex and the Acquisition Companies’ previous managing member and collateralized by all of the assets of VS and Apex. The line of credit has an interest rate of prime plus 1. The interest rate was 5.12% as of December 31, 2016. In the period of April 20, 2017 through June 30, 2017 the Company had borrowings of $30,000 and repayments of $2,396. The balance outstanding on the line of credit was approximately $260,000 as of June 30, 2017. As of June 30, 2017 the Company is out of compliance with the debt covenants related to the Line of Credit. |
Note Payable - Related Party
Note Payable - Related Party | 6 Months Ended |
Jun. 30, 2017 | |
Note Payable - Related Party | |
Note Payable - Related Party | NOTE 7 – NOTE PAYABLE - RELATED PARTY In connection with the Purchase Agreement of the Acquisition Companies (see Note 1) the Company executed a non-interest bearing Note Payable – related party in the amount of $830,000. The Note Payable principal amount will be reduced by the calculated cash payout of $2,000 related to the terms in the Purchase Agreement and payments owed in accordance with the Employment Agreement with the Seller in the amount of $150,000. The terms of the Employment Agreement include $50,000 annually to be paid over a three year period commencing on Effective Date of the Purchase Agreement. Upon delivery by the Purchaser to the Seller of the final note payment, related to the Employment Agreement, the Note held by the Seller shall be forfeited and cancelled an no further force or effect, and the Purchaser shall have no further obligations on the Note. No payments have been remitted pursuant to the Cash Payout and the Employment Agreement as of June 30, 2017. |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Notes Payable | NOTE 8 – NOTES PAYABLE In November 2009, the Company issued an unsecured note payable of $20,000. The note is payable either in cash or security equivalent at the option of the Company. In the event the Company repays this note in shares of the Company’s common stock the rate is $0.05 per share. The note payable bears 6% interest per annum and matured in May 2010. In January 2010, this note was satisfied by issuing a note payable to another unrelated party with the same terms and conditions except for its maturity date changed to January 2011. The note was in default as of December 31, 2015. In February 2016 the Company paid the noteholder $19,133, the remaining $9,900 balance of the note and $9,233 in accrued interest leaving the balance at $0 as of December 31, 2016. During the year ended December 31, 2012, the Company entered into demand notes with Regal Capital (formerly a related party) totaling $116,792 bearing interest at 12% per annum. As of June 30, 2017 and December 31, 2016 the notes amounted to $116,792 and $116,792 respectively. On September 15, 2016, the Company issued a demand promissory note of $25,000 due December 22, 2016. The interest rate is 10% with a minimum guaranteed interest amount of $2,500. In December 2016 the Company paid the balance of the note leaving the balance at $0 as of December 31, 2016. On March 6, 2017, the Company issued a 10% original issue discount (OID) promissory note with a principal balance of $66,667 due August 6, 2017 with an interest rate of 10%. In connection with the original issue discount promissory note the Company recorded OID of $6,667 and deferred financing of $1,000 which are to be amortized over the term of the note. As of June 30, 2017 the balance of the original issue discount promissory note amounted to $64,367, net of $1,999 of OID and $300 in deferred financing. As of April 20, 2017, in connection with the Purchase Agreement of the Acquisition Companies (see Note 1) the Co mpany assumed a note payable with a balance of that VS and Apex are jointly and severally liable for with a maturity date of April 2025 and an interest rate of 4.35%. The note payable is The note has certain debt covenants that the Company is out of compliance with. Per the Purchase Agreement the note was to be paid within 180 days of the Effective Date, the Company has not complied with the payment terms. As of June 30, 2017 the total balance owed on the note payable was $1,890,390. As of June 30, 2017 and December 31, 2016, notes payable amounted to $2,021,837 and $116,792, respectively. Accrued interest on the notes payable amounted to approximately $66,000 and $57,000 as of June 30, 2017 and December 31, 2016, respectively and is included in accrued expenses. |
Short Term Advances
Short Term Advances | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Short Term Advances | NOTE 9 – SHORT TERM ADVANCES During the years ended December 31, 2013, 2012 and 2011 an unrelated party advanced funds to the Company used for operating expenses. The advances are payable in cash and are non interest bearing and due on demand. The balance of these short term advances was $146,015 and $146,015 as of June 30, 2017 and December 31, 2016. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | NOTE 10 – ACCRUED EXPENSES As of June 30, 2017 and December 31, 2016 the Company had accrued expenses of $2,451,739 and $2,346,521 respectively. The following table displays the accrued expenses by category. June 30, 2017 December 31, 2016 Operating Expenses $ 33,438 $ 28,433 Lease Abandonment - 164,375 Employee Commissions 19,344 79,934 Interest 616,317 463,218 Salaries 1,616,851 1,476,917 Sales Tax Payable 53,400 46,771 Payroll Liabilities 112,389 86,873 $ 2,451,739 $ 2,346,521 |
Convertible Promissory Notes
Convertible Promissory Notes | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Convertible Promissory Notes | NOTE 11 – CONVERTIBLE PROMISSORY NOTES Convertible promissory notes consisted of the following: June 30, 2017 December 31, 2016 Secured convertible promissory notes $ 2,856,848 $ 2,801,875 Debt discount liability (180,363 ) (282,217 ) Debt discount original issue discount (11,125 ) (20,686 ) Debt discount deferred financing (2,979 ) (6,399 ) Secured convertible promissory notes– net $ 2,662,381 $ 2,492,573 During fiscal 2009, the Company reclassified $45,000 3% unsecured notes payable from long-term to short-term. The maturity of these notes payable ranged from January 2010 to April 2010 and the notes were in default at December 31, 2012. The Company negotiated with the note holder to extend the maturity date and has accrued 12% interest per annum based on the default provision until such time this note is extended or settled. In May 2013, the Company and the note holder renegotiated the terms of the note to include features that allow the note holder to convert the principal balance of the note into common shares at the conversion price of $.02. This note included down round (“ratchet”) provisions that resulted in derivative accounting treatment for this note (See Note 12). At issuance of the renegotiated note the Company recorded a debt discount in the amount of $45,000 which was fully amortized as of December 31, 2013. In June 2013, the note holder converted $764 into common shares at the contractual rate of $.02 per share. In March 2014, the note holder converted an additional $990 into common shares at the contractual rate of $.02 per share. In October 2014, the note holder assigned $20,000 of the note balance to a third party. The balance of the unsecured note payable amounted to $23,246 as of June 30, 2017 and December 31, 2016. On October 10, 2013, the Company issued a $10,000 6% convertible debenture with a one year maturity date. This convertible debenture converts at $.15. The Company recorded a debt discount of $8,333 upon issuance of this note. The debt discount was amortized over the term of the note. This note included down round (“Ratchet”) provisions that resulted in derivative accounting treatment for this note (See note 12). The balance of the convertible debenture is $10,000 as of June 30, 2017 and December 31, 2016. In connection herewith, the Company recorded a derivative liability and an offsetting debt discount of $8,333 (see Note 12). On December 11, 2013, the Company issued a $25,000 6% convertible debenture with a one year maturity date. This convertible debenture converts at $.16. The debt discount was amortized over the term of the note. This note included down round (“Ratchet”) provisions that resulted in derivative accounting treatment for this note (See note 12). In connection herewith, the Company recorded a derivative liability and an offsetting debt discount of $23,958 (see Note 12). The balance of this convertible debenture is $25,000 as of June 30, 2017 and December 31, 2016. On January 16, 2014, the Company issued a $25,000 6% convertible debenture with a one year maturity date. This convertible debenture converts at 50% of the lowest trading price during the ten trading days prior to the conversion date. The Company recorded a debt discount of $25,000 with the difference of $26,848 recorded as a derivative expense. The debt discount was amortized over the term of the note. This note included down round (“Ratchet”) provisions that resulted in derivative accounting treatment for this note (See note 12). In connection herewith, the Company recorded a derivative liability and an offsetting debt discount of $51,848 (see Note 12). The balance of this convertible debenture is $25,000 as of June 30, 2017 and December 31, 2016. In March 2014, the Company issued three $50,000 8% convertible debentures with a one year maturity date. Each note is convertible at a contractual rate of $3.50 which exceeded the quoted stock price on the date of the issuance of the convertible debentures. In the first quarter of 2016, the Company paid $50,000 in reduction of one of the notes. The balance of these three notes was $100,000 as of June 30, 2017 and December 31, 2016. On October 27, 2014, the Company issued an 8% original issue discount (OID) senior secured convertible promissory note with a principal balance of $21,600 with a one year maturity date. This convertible debenture converts at the lower of $.50 or 60% of the lowest trading price during the 25 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $311,662 and a debt discount of $18,400 (see Note 12). The Company also recorded OID of $1,600. The OID and debt discount were fully being amortized as of December 31, 2015. The balance of this convertible debenture as of June 30, 2017 and December 31, 2016 was $21,600. On December 19, 2014, the Company issued an 8% original issue discount (OID) senior secured convertible promissory note with a principal balance of $27,174 with a one year maturity date. This convertible debenture converts at the lower of $.50 or 60% of the lowest trading price during the 25 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $5,017 and a debt discount of $5,017 (see Note 12). The Company also recorded OID of $2,000. The OID and debt discount were fully amortized as of December 31, 2015. In February 2016, the note holder converted $27,174 of the convertible promissory note payable balance and $2,174 of accrued interest into 2,795 common shares at the contractual rate of $.80 per share. The balance of this convertible debenture as of June 30, 2017 and December 31, 2016 was $0. In October 2014, a note holder assigned $20,000 of principal balance and $4,489 of an accrued interest balance to a third party. In January 2015 the note holder converted $1,000 into 48 common shares at the contractual rate of $21. In March 2015, the note holder converted $1,300 into 185 common shares at the contractual rate of $7. In April and May 2015 the note holder converted $17,200 into 1,985 common shares at the contractual rate ranging from $5.60 to $11 per share. In March 2016, the Company paid the note holder the balance of the unsecured note payable of $4,989. The balance of this unsecured note payable as of June 30, 2017 and December 31, 2016 was $0. On February 11, 2015, the Company issued an 8% original issue discount (OID) senior secured convertible promissory note with a principal balance of $54,348 with a one year maturity date. This convertible debenture converts at the lower of $.50 or 60% of the lowest trading price during the 25 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $119,940, a debt discount of $50,348 (see Note 12), and derivative expense of $69,940. The Company also recorded OID of $4,000. The OID and debt discount are being amortized over the term of the note. In June 2015 the note holder assigned the balance of the note and accrued interest of $4,348 to a third party totaling a new note balance of $58,696 as of June 30, 2015. In August 2015, the note holder converted $10,000 of principle balance into 1,035 common shares at the contractual rate of $9.66 per share. In September 2015, the note holder converted $24,000 of principle balance into 2,484 common shares at the contractual rate of $9.66 per share. In October 2015, the note holder converted an additional $10,000 of principle balance into 1,134 common shares at the contractual rate of $8.82 per share. In March 2016, the note holder converted the remaining $14,696 of principle balance into 1,814 common shares at the contractual rate of $8.12 per share. The balance of the unsecured note payable amounted to $0 as of June 30, 2017 and December 31, 2016. On May 5, 2015, the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $115,789 with a one year maturity date. This convertible debenture converts at 70% of the lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $147,775, a debt discount of $110,000 (see Note 12), and derivative expense of $37,775. The Company also recorded OID of $5,789 and deferred financing of $10,000. The OID, deferred financing and debt discount are being amortized over the term of the note. In December 2015 the note holder converted $23,000 of principle balance into 2,041 common shares at the contractual rate of $11.28 per share. In January 2016 the note holder converted $65,673 of principle balance into 4,710 common shares at the contractual rate ranging from $13.72 to $11.22 per share. In February 2016, the note holder converted the remaining balance of $27,117 of the convertible promissory note and $11,579 of accrued interest into 2,266 common shares at the contractual rate of $5.12 per share. The balance of the convertible promissory note amounted to $0 as of June 30, 2017 and December 31, 2016. On May 15, 2015, the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $52,632 with a one year maturity date. This convertible debenture converts at 70% of the lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $67,171, a debt discount of $50,000 (see Note 12), and derivative expense of $17,171. The Company also recorded OID of $2,632. The OID and debt discount are being amortized over the term of the note. The balance of the convertible promissory note amounted to $52,632 as of June 30, 2017 and December 31, 2016. The debt discount and OID were fully amortized as of June 30, 2016. The balance of the convertible promissory note net of debt discount and OID as of December 31, 2015 amounted to $32,895. On May 27, 2015, the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $52,632 with a one year maturity date. This convertible debenture converts at 70% of the lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $67,171, a debt discount of $50,000 (see Note 12), and derivative expense of $17,171. The Company also recorded OID of $2,632. The OID and debt discount are being amortized over the term of the note. The balance of the convertible promissory note amounted to $52,632 as of June 30, 2017 and December 31, 2016. The debt discount and OID were fully amortized as of June 30, 2016. On June 5, 2015, the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $52,632 with a one year maturity date. This convertible debenture converts at 70% of the lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $67,171, a debt discount of $50,000 (see Note 12), and derivative expense of $17,171. The Company also recorded OID of $2,632. The OID and debt discount are being amortized over the term of the note. The balance of the convertible promissory note amounted to $52,632 as of June 30, 2017 and December 31, 2016. The debt discount and OID were fully amortized as of June 30, 2016. On June 15, 2015, the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $157,895 with a one year maturity date. This convertible debenture converts at 70% of the lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $201,512, a debt discount of $142,500 (see Note 12), and derivative expense of $59,406. The Company also recorded OID of $7,500 and deferred financing costs of $1,500. The OID, deferred financing and debt discount are being amortized over the term of the note. In June 2016, the note holder converted $5,000 of principle balance into 3,968 common shares at the contractual rate of $1.26 per share. During the period of October 1, 2016 through December 31, 2016 the note holder converted $85,620 of principle balance into 680,000 common shares at contractual rates ranging from $.084 to $.52 per share. In January 2017, the note holder converted the remaining principal balance of $5,280 into 62,857 common shares at the contractual rate of $.084. The balance of the convertible promissory note amounted to $0 and $5,280 as of June 30, 2017 and December 31, 2016, respectively. The debt discount and OID were fully amortized as of June 30, 2016. On July 1, 2015, the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $157,895 with a one year maturity date. This convertible debenture converts at 70% of the lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $201,512, a debt discount of $142,500 (see Note 12), and derivative expense of $59,406. The Company also recorded OID of $7,500. The OID and debt discount are being amortized over the term of the note. The balance of the convertible promissory note amounted to $157,895 as of June 30, 2017 and December 31, 2016. The debt discount and OID were fully amortized as of June 30, 2016. On July 15, 2015, the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $157,895 with a one year maturity date. This convertible debenture converts at 70% of the lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $201,512, a debt discount of $142,500 (see Note 12), and derivative expense of $59,406. The Company also recorded OID of $7,500. The OID and debt discount are being amortized over the term of the note. In September 2016, the note holder converted $9,720 of principle balance into 27,000 common shares at a contractual rate of $.036 per share. In January 2017, the note holder converted $22,421 of principle balance into 386,510 common shares at a contractual rates ranging from $.03 to $.084 per share. The balance of the convertible promissory note amounted to $125,754 and $148,175 as of June 30, 2017 and December 31, 2016, respectively. The debt discount and OID were fully amortized as of September 30, 2016. On July 23, 2015, the Company issued a convertible promissory note with a principal balance of $429,439 with a one year maturity date. This convertible debenture converts at 55% of the two lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $707,603, a debt discount of $429,439 (see Note 12), and derivative expense of $278,164. The debt discount is being amortized over the term of the note. In March 2016, the note holder converted $70,000 of principle balance into 7,273 common shares at the contractual rate of $9.64 per share. In April 2016, the note holder converted $15,000 of principle balance into 2,997 common shares at the contractual rate of $5.02 per share. In May 2016, the note holder converted $14,000 of principle balance into 4,545 common shares at the contractual rate of $3.08 per share. In the period of July 2016 through September 2016 the note holder converted $19,600 of principle balance into 52,216 common shares at the contractual rate ranging from $.242 to $.76 per share. In the period of October 2016 through December 2016 the note holder converted $29,700 of principle balance into 254,500 common shares at the contractual rate ranging from $.082 to $2.42 per share. In January 2017, the note holder converted $40,100 of principle balance into 771,429 common shares at a contractual rates ranging from $.034 to $.078 per share. The balance of the convertible promissory note amounted to $241,039 and $281,139 as of June 30, 2017 and December 31, 2016, respectively. The debt discount was fully amortized as of September 30, 2016. On October 9, 2015, three convertible promissory notes mentioned above were assigned to a third party note holder with the same terms and balances. In February 2016, the note holder converted $20,000 of the convertible promissory note and $2,000 of accrued interest into 2,095 common shares at the contractual rate of $10.50 per share. In March 2016, the note holder converted $20,000 of the convertible promissory note and $2,000 of accrued interest into 2,095 common shares at the contractual rate of $10.50 per share. In April 2016, the note holder converted an additional $15,000 of the convertible promissory note and $1,500 of accrued interest into 3,273 common shares at the contractual rate of $5.04 per share. In May 2016, the note holder converted $10,895 of the convertible promissory note and $1,089 of accrued interest into 3,566 common shares at the contractual rate of $3.36 per share. In the period of July 2016 through September 2016 the note holder converted $15,000 of principle balance into 35,138 common shares at the contractual rate ranging from $.252 to $1.20 per share. In the period of October 2016 through December 2016 the note holder converted $27,500 of principle balance and $2,750 of accrued interest into 285,083 common shares at the contractual rate ranging from $.08 to $.252 per share. In January 2017, the note holder converted $42,000 of principle balance and $4,200 of accrued interest into 1,093,125 common shares at the contractual rate ranging from $.036 to $.08 per share. In June 2017, the note holder converted $13,800 of principle balance and $1,380 of accrued interest into 574,613 common shares at the contractual rate ranging from $.024 to $.029 per share. The balance of the convertible promissory note amounted to $309,490 and $365,289 as of June 30, 2017 and December 31, 2016, respectively. The debt discount was fully amortized as of September 30, 2016. On October 19, 2015, the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $157,500 with a one year maturity date. This convertible debenture converts at 55% of the average of the two lowest traded prices in the prior 30 days before conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $259,764, a debt discount of $142,500 (see Note 12), and derivative expense of $117,264. The Company also recorded OID of $7,500. The OID and debt discount are being amortized over the term of the note. In December 2016, the Company adjusted the convertible promissory note’s principal balance to $157,895 per recalculation of the OID. The OID and debt discount was fully amortized as of December 31, 2016. The balance of the convertible promissory note amounted to $157,895 as of June 30, 2017 and December 31, 2016. On November 18, 2015, the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $157,500 with a one year maturity date. This convertible debenture converts at 55% of the average of the two lowest traded prices in the prior 30 days before conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $259,764, a debt discount of $142,500 (see Note 12), and derivative expense of $117,264. The Company also recorded OID of $7,500. The OID and debt discount are being amortized over the term of the note. In December 2016, the Company adjusted the convertible promissory note’s principal balance to $157,895 per recalculation of the OID. The OID and debt discount was fully amortized as of December 31, 2016. The balance of the convertible promissory note amounted to $157,895 as of June 30, 2017 and December 31, 2016. On December 18, 2015, the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $263,158 with a one year maturity date. This convertible debenture converts at 70% of the lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $335,598, a debt discount of $237,500 (see Note 12), and derivative expense of $98,756. The Company also recorded OID of $12,500. The OID and debt discount are being amortized over the term of the note. The OID and debt discount was fully amortized as of December 31, 2016. The balance of the convertible promissory note amounted to $263,158 as of June 30, 2017 and December 31, 2016. On January 19, 2016, the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $111,111 with a one year maturity date. This convertible debenture converts at 70% of the lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $141,697, a debt discount of $95,000 (see Note 12), and derivative expense of $52,808. The Company also recorded OID of $5,000. The OID and debt discount are being amortized over the term of the note. In December 2016, the note holder converted $15,700 of principle balance into 186,904 common shares at a contractual rate of $.084 per share. During the period of In January through February 2017, the note holder converted $34,300 of principle balance and into 550,396 common shares at contractual rates ranging from $.036 to $.084 per share. The balance of the convertible promissory note amounted to $61,111 and $95,411 as of June 30, 2017 and December 31, 2016, respectively. The balance of the convertible promissory note net of debt discount and OID as of June 30, 2017 and December 31, 2016 amounted to $61,111 and $91,244, respectively. On February 5, 2016, the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $157,895 with a one year maturity date. This convertible debenture converts at 70% of the lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $201,359, a debt discount of $142,500 (see Note 12), and derivative expense of $59,254. The Company also recorded OID of $7,500. The OID and debt discount are being amortized over the term of the note. In June 2017, the note holder converted $7,350 of principle balance into 262,500 common shares at contractual rate of $.012 per share. The balance of the convertible promissory note amounted to $132,895 and $157,895 as of June 30, 2017 and December 31, 2016, respectively. The balance of the convertible promissory note net of debt discount and OID as of June 30, 2017 and December 31, 2016 amounted to $150,545 and $145,395, respectively. On March 7, 2016, the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $118,573 with a one year maturity date. This convertible debenture converts at 70% of the lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $151,213, a debt discount of $112,940 (see Note 12), and derivative expense of $38,569. The Company also recorded OID of $5,632. The OID and debt discount are being amortized over the term of the note. The balance of the convertible promissory note amounted to $118,573 as of June 30, 2017 and December 31, 2016. The balance of the convertible promissory note net of debt discount and OID as of June 30, 2017 and December 31, 2016 amounted to $$118,573 and $93,869, respectively. On April 1, 2016, the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $105,263 with a six month maturity date. This convertible debenture converts at 70% of the lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $108,185, a debt discount of $95,000 (see Note 12), and derivative expense of $13,448. The Company also recorded OID of $5,000. The OID and debt discount are being amortized over the term of the note. The balance of the convertible promissory note amounted to $105,263 as of June 30, 2017 and December 31, 2016. The balance of the convertible promissory note net of debt discount and OID as of June 30, 2017 and December 31, 2016 amounted to $105,263 and $80,263, respectively. On May 23, 2016, the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $52,632 with a five month maturity date. This convertible debenture converts at 60% of the lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $65,144, a debt discount of $47,500 (see Note 12), and derivative expense of $17,776. The Company also recorded OID of $2,500. The OID and debt discount are being amortized over the term of the note. As of May 23, 2017, the convertible promissory note is in default (see Note 19). The balance of the convertible promissory note amounted to $52,632 as of June 30, 2017 and December 31, 2016. The balance of the convertible promissory note net of debt discount and OID as of June 30, 2017 and December 31, 2016 amounted to $45,474 and $32,974, respectively. On June 24, 2016, the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $78,947 with a four month maturity date. This convertible debenture converts at 60% of the lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $84,205, a debt discount of $71,250 (see Note 12), and derivative expense of $15,653. The Company also recorded OID of $3,750. The OID and debt discount are being amortized over the term of the note. The balance of the convertible promissory note amounted to $78,947 as of June 30, 2017 and December 31, 2016. The balance of the convertible promissory note net of debt discount and OID as of June 30, 2017 and December 31, 2016 amounted to $60,601 and $41,850, respectively. On July 20, 2016, the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $52,632 with an eighteen month maturity date. This convertible debenture converts at 60% of the lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $56,141, a debt discount of $47,500 (see Note 12), and derivative expense of $8,641. The Company also recorded OID of $2,632. The OID and debt discount are being amortized over the term of the note. The balance of the convertible promissory note amounted to $52,632 as of June 30, 2017 and December 31, 2016. The balance of the convertible promissory note net of debt discount and OID as of June 30, 2017 and December 31, 2016 amounted to $28,194 and $10,651, respectively. On July 29, 2016, the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $52,632 with an eighteen month maturity date. This convertible debenture converts at 60% of the lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $56,137, a debt discount of $47,500 (see Note 12), and derivative expense of $8,637. The Company also recorded OID of $2,632 and deferred financing of $2,500. The OID, deferred financing, and debt discount are being amortized over the term of the note. The balance of the convertible promissory note amounted to $52,632 as of June 30, 2017 and December 31, 2016. The balance of the convertible promissory note net of debt discount, deferred financing and OID as of June 30, 2017 and December 31, 2016 amounted to $26,623 and $9,079, respectively. On September 1, 2016, the Company executed a Securities Purchase Agreement (SPA). In connection with the SPA the Company may issue 5% original issue discount (OID) convertible promissory notes with an aggregate principal balance amounting to $157,895. In connection with the SPA, on September 1, 2016, the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $157,895. This convertible debenture converts at 60% of the lowest trading price during the 30 days prior to conversion. The promissory note will be fulfilled by issuing multiple tranches. On September 1, 2016, at the closing of the first tranche, the outstanding principle amount totaled $32,895. Each tranche will have a twelve month maturity date following the issuances of the tranche. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $35,086, a debt discount of $25,000 (see Note 12), and derivative expense of $10,086. The Company also recorded OID of $7,895. The OID and debt discount are being amortized over the term of the note. The balance of the convertible promissory note amounted to $32,895 as of June 30, 2017 and December 31, 2016. The balance of the convertible promissory note net of debt discount and OID as of June 30, 2017 and December 31, 2016 amounted to $16,132 and $5,340, respectively. On September 2, 2016, the Company issued a s |
Derivative Liability
Derivative Liability | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Liability | NOTE 12 – DERIVATIVE LIABILITY The Company enters into financing arrangements that contain embedded derivative features due to down round (“Ratchet”) provisions or conversion formulas that cause derivative treatment. The Company accounts for these arrangements in accordance with Accounting Standards Codification topic 815, Accounting for Derivative Instruments and Hedging Activities (“ASC 815”) as well as related interpretation of this standard. In accordance with this standard, derivative instruments are recognized as either assets or liabilities in the balance sheet and are measured at fair values with gains or losses recognized in earnings. The Company determines the fair value of derivative instruments based on available market data using appropriate valuation models, considering all of the rights and obligations of each instrument. We estimate fair values of derivative financial instruments using various techniques (and combinations thereof) that are considered consistent with the objective measuring fair values. In selecting the appropriate technique, we consider, among other factors, the nature of the instrument, the market risks that it embodies and the expected means of settlement. For less complex derivative instruments we generally use the Black-Scholes model, adjusted for the effect of dilution, because it embodies all of the requisite assumptions (including trading volatility, estimated terms, dilution and risk free rates) necessary to fair value these instruments. Estimating fair values of derivative financial instruments requires the development of significant and subjective estimates that may, and are likely to, change over the duration of the instrument with related changes in internal and external market factors. In addition, option-based techniques (such as Black-Scholes model) are highly volatile and sensitive to changes in the trading market price of our common stock. Since derivative financial instruments are initially and subsequently carried at fair values, our income (expense) going forward will reflect the volatility in these estimates and assumption changes. Under the terms of the new accounting standard, increases in the trading price of the Company’s common stock and increases in fair value during a given financial quarter result in the application of non-cash derivative expense. Conversely, decreases in the trading price of the Company’s common stock and decreases in trading fair value during a given financial quarter result in the application of non-cash derivative income. The following table presents a reconciliation of the derivative liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) from December 31, 2015 to June 30, 2017: Conversion feature derivative liability Balance at December 31, 2015 $ 3,718,242 Initial fair value of derivative liability recorded as debt discount 772,118 Initial fair value of derivative liability charged to other expense 348,244 Reclass of derivative liability to additional paid in capital due to conversions (840,039 ) Loss on change in fair value included in earnings 958,072 Balance at December 31, 2016 4,956,637 Initial fair value of derivative liability recorded as debt discount 127,894 Initial fair value of derivative liability charged to other expense 237,085 Reclass of derivative liability to additional paid in capital due to conversions (279,209 ) Loss on change in fair value included in earnings 27,608 Balance at June 30, 2017 $ 5,070,015 Total derivative liability at June 30, 2017 and December 31, 2016 amounted to $5,070,015 and $4,956,637, respectively. The change in fair value included in earnings of $27,608 is due in part to the quoted market price of the Company’s common stock decreasing from $.20 at December 31, 2016 to $.042 at June 30, 2017 coupled with substantially reduced conversion prices due to the effect of “Ratchet” provisions incorporated in convertible notes payable. The Company used the following assumptions for determining the fair value of the convertible instruments granted under the Black-Scholes option pricing model: From January, 2017 to June 30, 2017 Expected volatility 319% - 455 % Expected term 3 – 12 months Risk-free interest rate 0.02% - 0.09 % Expected dividend yield 0 % |
Stockholders' Deficit
Stockholders' Deficit | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Deficit | NOTE 13 - STOCKHOLDERS’ DEFICIT Effective May 22, 2017 the Company executed a 1-200 Reverse Stock Split (see Note 1). On January 6, 2016, the Company filed an amendment to its articles of incorporation (the “Amendment”) with the Secretary of State of the State of Nevada, which, among other things, established the designation, powers, rights, privileges, preferences and restrictions of the Series A Preferred Stock, $0.001 par value per share (the “Series A Preferred Stock”). Among other provisions, each one (1) share of the Series A Preferred Stock shall have voting rights equal to (x) 0.019607 multiplied by divided by minus Fifty-one (51) shares of Series A Preferred Stock were authorized and fifty-one (51) shares of Series A Preferred Stock were issued to Roger Ralston, the Company’s Chief Executive Officer and a director of the Company (CEO). The Series A Preferred Stock was issued to the CEO and is Series A Super Voting Preferred Stock. The Super Voting was created primarily to be able to obtain a quorum and conduct business at shareholder meetings. The Series A Preferred Stock has no dividend rights, no liquidation rights and no redemption rights, and was created primarily to be able to obtain a quorum and conduct business at shareholder meetings. All shares of the Series A Preferred Stock shall rank (i) senior to the Company’s common stock and any other class or series of capital stock of the Company hereafter created, (ii) pari passu During 2016, the Company issued 1,715,178 shares of common stock at contractual rates ranging from $.08 to $14.22 for the conversion of $593,983 in principal and accrued interest of convertible notes payable (See Note 11). During 2016, the Company issued 321,899 shares of common stock to employees of the Company for $60,932 in non cash compensation. In the same period the Company issued 31,899 shares of common stock to service professionals for $8,932 of services rendered. These shares were valued at the closing market price on the date of issuance which ranges from $.016 to $.30. These shares vested immediately upon issuance and accordingly their value was recorded as stock compensation expense. In the period of January 1, 2017 through June 30, 2017, the Company issued 3,704,786 shares of common stock at contractual rates ranging from $.34 to $.012 for the conversion of $165,250 in principal and $5,580 in accrued interest of convertible notes payable (See Note 11). |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 14 - RELATED PARTY TRANSACTIONS Due to Related Parties The following related party transactions have been presented on the balance sheet in due to related parties. During the year ended December 31, 2016 the Company repaid to the Chief Executive Officer the entire balance of the $48,478 of accrued interest due to him as of December 31, 2015 resulting in a $0 balance as of December 31, 2016. In July 2016, the Company repaid $1,809 to the Chief Executive Officer. In July 2016, the Company repaid $1,809 to the Chief Executive Officer. In November 2016, the Company repaid $603 to the Chief Executive Officer. As of June 30, 2017 and December 31, 2016 the Company had a payable to the Chief Executive Officer of the Company amounting to $1,814. These advances are short-term in nature and non-interest bearing. Note Payable – related party The following related party transactions have been presented on the balance sheet in Note Payable – related party. In connection with the Purchase Agreement of the Acquisition Companies (see Note 1) the Co mpany |
Barter Revenue
Barter Revenue | 6 Months Ended |
Jun. 30, 2017 | |
Deferred Revenue Disclosure [Abstract] | |
Barter Revenue | NOTE 15 – BARTER REVENUE The Company provides security systems and associated installation labor in exchange for business services. The Company recognizes revenue from these barter transactions when security systems are installed and recognizes deferred barter costs as other current assets until the barter transaction is completed and then recognizes the appropriate expense. The barter revenue is valued at the fair market value which is the selling price we sell to other third parties. The barter revenue for the six months ended June 30, 2017 and the year ended December 31, 2016, totaled $29,974 and $20,543, respectively. |
Accrued Payroll Taxes
Accrued Payroll Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Payroll Taxes | NOTE 16 - ACCRUED PAYROLL TAXES As of June 30, 2017 and December 31, 2016 the Company recorded a liability related to unpaid payroll taxes which includes interest and penalties of approximately $112,000 and $87,000, respectively. The liability was incurred in the years ended December 31, 2007 through June 30, 2017 as a result of the Company not remitting payroll tax liabilities. In August 2013, the Company paid $43,176 and in September 2015, the Company paid $28,281 toward the outstanding payroll tax liabilities. Such amount also includes current payroll tax liabilities and has been included in accrued expenses in the accompanying unaudited consolidated financial statements. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 17 - SEGMENT REPORTING Although the Company has a number of operating divisions, separate segment data has not been presented as they meet the criteria for aggregation as permitted by ASC Topic 280, “Segment Reporting” (formerly Statement of Financial Accounting Standards (SFAS) No. 131, “Disclosures About Segments of an Enterprise and Related Information”). Our chief operating decision-maker is considered to be our Chief Executive Officer (CEO). The CEO reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. The financial information reviewed by the CEO is identical to the information presented in the accompanying consolidated statements of operations. Therefore, the Company has determined that it operates in a single operating segment, specifically, security systems and related services. For the six months ended June 30, 2017 and 2016 all material assets and revenues of the Company were in the United States. |
Commitments
Commitments | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | NOTE 18 – COMMITMENTS Leases: In connection with the Purchase Agreement of the Acquisition Companies (see Note 1) the Co mpany assumed Rent expense for the period of April 20, 2017 through June 30, 2017 was $22,742. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 19 – SUBSEQUENT EVENTS On July 3, 2017 in an effort to resolve outstanding events of default to a note holder the Company modified the terms on an existing note from a 10% interest rate to a 12% interest rate with a retroactive date to September 11, 2016, the date of original maturity date and date of the first event of default. In addition, the Company agreed to incorporate the penalties and interest due to the note holder into the existing principal amount of the note of $151,594 modifying the principal balance of the note to $232,834 as of July 3, 2017. Finally, the Company also agreed to increase the discount tin the note from 60% of the lowest traded price in the prior thirty trading days to 55% of the lowest traded price in the prior thirty trading days. On July 21, 2017 the Company executed a secured promissory note (“note”) with a customer in the amount of $47,500 payable no later than August 15, 2017 (“maturity date”). The note is secured by a Confession of Judgment in the principal amount of $95,000 executed and delivered in conjunction with the note. Upon timely payment on or before the maturity date the Company shall cancel the note and Confession of Judgment. In the event the customer defaults on the note, the Company is entitled to file the confession of Judgment against the customer and may thereafter seek to enforce the judgment entered against the customer. On October 2, 2017 the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $31,579 with a one year maturity date. This convertible debenture converts at 60% of the lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $52,502, OID of $1,579 and derivative expense of $52,502. The OID and deferred financing are being amortized over the term of the note. On October 3, 2017 the Company executed an agreement with a Note Holder (see Note 8) to extend the maturity date of a promissory note ad additional five months beyond the original maturity date of August 6, 2017. The cost of funding is 20% over a six month term prorated to a five month term. In addition, the Company agreed to issue the note holder 375,000 restricted shares of common stock upon payment of the note. It was also agreed that if the company and the note holder agreed the note may be repaid in the form of shares of common stock of the Company at 30% discount to market. On October 5, 2017 the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $15,789 with a one year maturity date. This convertible debenture converts at 60% of the lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $26,251, OID of $789 and derivative expense of $26,251. The OID and deferred financing are being amortized over the term of the note. On October 25, 2017 the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $57,895 with a one year maturity date. This convertible debenture converts at 60% of the lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $96,254 OID of $2,895 and derivative expense of $96,254. The OID and deferred financing are being amortized over the term of the note. On November 6, 2017 the Company executed an agreement with a Note Holder (see Note 11) related to a convertible promissory note that is in default as of May 2017. The Company agreed to roll the accrued interest, including default interest, into the note balance and adjust the discount on the note from “60% of the lowest traded price in the prior thirty (30) trading days” to “55% of the lowest traded price in the prior thirty (30) trading days.” The interest rate will remain at 10% per annum. On November 24, 2017 the Company issued a 5% original issue discount (OID) convertible promissory note with a principal balance of $63,158 with a one year maturity date. This convertible debenture converts at 60% of the lowest trading price during the 30 days prior to conversion. Due to certain ratchet provisions contained in the convertible promissory note the Company accounted for this conversion feature as a derivative liability. In connection herewith, the Company recorded a derivative liability of $105,005, OID of $3,158 and derivative expense of $105,005. The OID and deferred financing are being amortized over the term of the note. Subsequent to June 30, 2017 the Company issued 3,793,076 shares of common stock upon conversion of $32,609 of convertible promissory notes and $1,394 of accrued interest. These notes were converted at contractual rates ranging from $.00357 to $.0196. |
Basis of Presentation and Sum25
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Organization | Organization DirectView Holdings, Inc., (the “Company”), was incorporated in the State of Delaware on October 2, 2006. On July 6, 2012 the Company changed its domicile from Delaware and incorporated in the State of Nevada. The Company has the following six subsidiaries: DirectView Video Technologies Inc. (“DVVT”), DirectView Security Systems Inc. (“DVSS”), Ralston Communication Services Inc. (“RCI”), Meeting Technologies Inc (“MT”), Virtual Surveillance (“VS”), and Apex CCTV, LLC (“APEX”). The Company is a full-service provider of teleconferencing services to businesses and organizations. The Company’s conferencing services enable its clients to cost-effectively conduct remote meetings by linking participants in geographically dispersed locations. The Company’s focus is to provide high value-added conferencing services to organizations such as professional service firms, investment banks, high tech companies, law firms, investor relations firms, and other domestic and multinational companies. The Company is also a provider of the latest technologies in surveillance systems, digital video recording and services. The systems provide onsite and remote video and audio surveillance. |
Acquisition | Acquisition Effective April 20, 2017 (the “Effective Date”), the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with Video Surveillance Limited Liability Company, a Texas limited liability company with an assumed name of Virtual Surveillance (“VS”), Apex CCTV Limited Liability Company, a Texas limited liability company formerly known as Vaultronics (“APEX” and together with VS, the “Acquisition Companies”), and Mark D. Harris the sole member and equity owner of each of the Acquisition Companies (the “Seller”). According to the terms of the Purchase Agreement, on the Effective Date, the Seller transferred to the Company all of the issued and outstanding equity interests of each of the Acquisition Companies. Virtual Surveillance, LLC. was incorporated in the State of Texas on February 26, 2015. VS is an integrator of security products and low voltage technology such as security cameras, access control, structure cabling, Wi-Fi and digital signage. VS’s services enable its clients to cost-effectively have one vendor that can provide services across their geographically dispersed locations. VS’s primary focus is to provide high value-added commercial security products and services to manufacturing, distribution, healthcare, entertainment, and a number of Fortune 500 clients in North America. Apex CCTV, LLC was incorporated in the State of Texas on February 24, 2015. Apex is a full-service provider of security products through an ecommerce website. Apex’s website allows customers to purchase commercial grade software and equipment cost-effectively. Apex markets to systems integrators, small businesses, corporations, and individuals. Apex is a provider of the latest technologies in surveillance systems, digital video recording, access control, and low voltage products. In connection with the acquisition, the Company acquired all the assets and assumed all of the liabilities of the acquired companies. Included in these liabilities is a Note Payable to a bank with a remaining balance, at the acquisition date, of $1,923,896. Per the Purchase Agreement this Note Payable to bank was to be paid in full and have a complete release of the Seller’s guarantee and collateral related to the note within 180 days of the effective date of the Purchase Agreement. In addition to the assumed assets and liabilities the Company executed a Note Payable – related party (“Note”) in the amount of $830,000. The Note Payable principal amount will be reduced by a $2,000 cash purchase price payout calculated related to the terms in the Purchase Agreement and $150,000 based on an Employment Agreement with the Seller to be paid over a three year period commencing on effective date of the Purchase Agreement. Upon delivery by the Purchaser to the Seller of the final Note payment, related to the Employment Agreement, the Note held by the Seller shall be forfeited and cancelled an no further force or effect, and the Purchaser shall have no further obligations on the Note. In an Event of Default of the Note, Purchaser shall issue to Seller convertible preferred stock convertible into common stock of the Purchaser with a fair value up to $1,000,000 (“Convertible Preferred Stock”) valued by the closing price of the Purchaser’s common stock on the day written notice of an Event of Default (as define in the Note) under the terms of the Note are delivered to the Purchaser (the “Default Notice”). The Convertible Preferred Stock may be converted solely upon an Event of Default and in the amount equal to the outstanding amount due under the Note triggering such Event of Default. The Convertible Preferred Stock shall be held by the Purchaser in escrow and shall be released within ten days of the Event of Default. As of June 30, 2017, no payments have been remitted pursuant to the Cash Payout and the Employment Agreement. The Company has not been notified of an Event of Default. No payments have been remitted pursuant to the Cash Payout and the Employment Agreement as of June 30, 2017. Furthermore, per the Purchase Agreement, in the event the acquisition companies are purchased for less than the Maximum Purchase Price upon the acquisition companies generating at least $500,000 in cash flow each year as determined by Schedule 2.03(a) in the Purchase Agreement, the Seller shall receive five percent (5%) of such cash flow up to $300,000 per year (the “Cash Flow Payments”). The Cash Flow Payments shall expire upon the earlier of (i) three years from the Effective Date, or (ii) the aggregate payment of the Purchase Price in the amount of the Maximum Purchase Price. Any payments made as cash flow payments will reduce the note Payable – related party. The fair value of the assets acquired and liabilities assumed on April 20, 2017 in the acquisition are as follows: Assets acquired: Cash $ 59,389 Accounts receivable, net of allowance for doubtful accounts 201,846 Inventory 42,381 Other current assets 15,372 Property and equipment 203,496 Goodwill 2,093,259 Intangible assets 716,933 Total assets $ 3,332,676 Liabilities assumed: Accounts payable and accrued expenses $ 58,308 Credit card payable 102,906 Deferred Revenue 184,877 Line of Credit 232,689 Note payable - related party 830,000 Note payable 1,923,896 Total Liabilities 3,332,676 Purchase price (Cash) $ 0 The estimates of fair values and the purchase price allocation is subject to change pending the finalization of the valuation of assets acquired and liabilities assumed. The following unaudited pro forma consolidated results of operations have been prepared as if the merger occurred on January 1, 2016: Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Net Revenues $ 2,561,213 $ 3,912,479 Net Loss $ (1,124,219 ) $ (4,438,937 ) Net Loss per Share $ (0.19 ) $ (2.08 ) Pro forma data does not purport to be indicative of the results that would have been obtained had these events actually occurred at the beginning of the periods presented and is not intended to be a projection of future results. |
Basis of Presentation | Basis of Presentation The unaudited consolidated financial statements include the accounts of the Company, five wholly-owned subsidiaries, and a subsidiary with which the Company has a majority voting interest of approximately 58% (the other 42% is owned by non-controlling interests, including 12% which is owned by the Company’s CEO) as of June 30, 2017. In the preparation of the unaudited consolidated financial statements of the Company, intercompany transactions and balances are eliminated and net earnings are reduced by the portion of the net earnings of subsidiaries applicable to non-controlling interests. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by US GAAP for complete financial statements. The unaudited consolidated financial statements and notes included herein should be read in conjunction with the annual consolidated financial statements and notes for the year ended December 31, 2016 included in our Annual Report on Form 10-K filed with the SEC on April 17, 2017. In the opinion of management, all adjustments (consisting of normal recurring items) necessary to present fairly the Company’s financial position as of June 30, 2017, and the results of operations and cash flows for the six months ending June 30, 2017 have been included. The results of operations for the six months ended June 30, 2017 are not necessarily indicative of the results to be expected for the full year. All share and per share amounts have been presented to give retroactive effect to a 1 for 200 reverse stock split that occurred May 22, 2017. |
Use of Estimates | Use of Estimates In preparing the unaudited consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the dates of the statements of financial condition, and revenues and expenses for the years then ended. Actual results may differ significantly from those estimates. Significant estimates made by management include, but are not limited to, the allowance for doubtful accounts, deferred tax asset valuation allowance, valuation of stock-based compensation, the useful life of property and equipment, valuation of beneficial conversion features on convertible debt, valuation of intangible assets and the assumptions used to calculate derivative liabilities. |
Non-controlling Interests in Consolidated Financial Statements | Non-controlling Interests in Consolidated Financial Statements The Company follows ASC 810-10-65, “Non-controlling Interests in Consolidated Financial Statements.” This statement clarifies that a non-controlling (minority) interest in a subsidiary is an ownership interest in the entity that should be reported as equity in the unaudited consolidated financial statements. It also requires consolidated net income to include the amounts attributable to both the parent and non-controlling interest, with disclosure on the face of the unaudited consolidated income statement of the amounts attributed to the parent and to the non-controlling interest. In accordance with ASC 810-10-45-21, the losses attributable to the parent and the non-controlling interest in subsidiary may exceed their interests in the subsidiary’s equity. The excess and any further losses attributable to the parent and the non-controlling interest shall be attributed to those interests even if that attribution results in a deficit non-controlling interest balance. As of June 30, 2017 and December 31, 2016, the Company reflected a non-controlling interest of $28,785 and ($2,740) in connection with our majority-owned subsidiary, DirectView Security Systems Inc. as reflected in the accompanying unaudited consolidated balance sheets. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. The Company places its cash with a high credit quality financial institution. The Company’s account at this institution is insured by the Federal Deposit Insurance Corporation ("FDIC") up to $250,000. As of June 30, 2017 and December 31, 2016, the Company had no bank balances exceeding the FDIC insurance limit. To reduce its risk associated with the failure of such financial institution, the Company evaluates at least annually the rating of the financial institution in which it holds deposits. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company follows FASB ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), for assets and liabilities measured at fair value on a recurring basis. ASC 820 establishes a common definition for fair value to be applied to existing generally accepted accounting principles that require the use of fair value measurements establishes a framework for measuring fair value and expands disclosure about such fair value measurements. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Additionally, ASC 820 requires the use of valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized below: Level 1: Observable inputs such as quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs for which there is little or no market data, which require the use of the reporting entity’s own assumptions Cash and cash equivalents include money market securities that are considered to be highly liquid and easily tradable as of June 30, 2017 and December 31, 2016. These securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within our fair value hierarchy. As of June 30, 2017 and December 31, 2016 there were not any cash equivalents. In addition, FASB ASC 825-10-25 Fair Value Option expands opportunities to use fair value measurements in financial reporting and permits entities to choose to measure many financial instruments and certain other items at fair value. The Company did not elect the fair value options for any of its qualifying financial instruments. The carrying amounts reported in the balance sheet for cash, accounts receivable, accounts payable, accrued expenses, notes payable and due to related parties approximate their estimated fair market value based on the short-term maturity of these instruments. The carrying amount of the notes and convertible promissory notes approximates the estimated fair value for these financial instruments as management believes that such notes constitute substantially all of the Company’s debt and the interest payable on the notes approximates the Company’s incremental borrowing rate. |
Accounts Receivable | Accounts Receivable The Company has a policy of reserving for questionable accounts based on its best estimate of the amount of probable credit losses in its existing accounts receivable. The Company uses specific identification of accounts to reserve possible uncollectible receivables. The Company periodically reviews its accounts receivable to determine whether an allowance is necessary based on an analysis of past due accounts and other factors that may indicate that the realization of an account may be in doubt. Account balances deemed to be uncollectible are charged to the bad debt expense after all means of collection have been exhausted and the potential for recovery is considered remote. At June 30, 2017 and December 31, 2016, management determined that an allowance was necessary which amounted to approximately $160,000 and $120,000, respectively. During the six months ended June 30, 2017 and 2016 the Company recognized $0 and $450 respectively of write-offs related to uncollectible accounts receivable. |
Advertising | Advertising Advertising is expensed as incurred. Advertising expense for the six months ended June 30, 2017 and 2016 was $3,474 and $122,209 respectively. |
Shipping Costs | Shipping costs Shipping costs are included in cost of sales for VS and Apex and shipping costs are included in other selling, general and administrative expenses for DVVS and were deemed to be not material for the six months ended June 30, 2017 and 2016, respectively. |
Inventory | Inventory Inventory, consisting of finished goods related to our products is stated at the lower of cost or net realizable value utilizing the first-in, first-out method. The Company acquires inventory for specific installation jobs. As a result, the Company generally orders inventory only as needed for installations. Due to the anticipation of customers’ needs the Company purchased inventory items and had $87,685 and $29,953 in inventory as of June 30, 2017 and December 31, 2016, respectively. |
Property and Equipment | Property and Equipment Property and equipment is carried at cost. The cost of repairs and maintenance is expensed as incurred; major replacements and improvements are capitalized. When assets are retired or disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in income in the year of disposition. The Company examines the possibility of decreases in the value of fixed assets when events or changes in circumstances reflect the fact that their recorded value may not be recoverable. Depreciation is calculated on a straight-line basis over the estimated useful life of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the estimated useful life or the term of the lease. |
Impairment of Long-lived Assets | Impairment of Long-Lived Assets Long-Lived Assets of the Company are reviewed for impairment whenever events or circumstances indicate that the carrying amount of assets may not be recoverable, pursuant to guidance established in ASC 360-10-35-15, “Impairment or Disposal of Long-Lived Assets” |
Intangible Assets | Intangible Assets The Company amortizes identifiable intangible assets over their useful lives on a straight line basis. |
Income Taxes | I ncome Taxes Income taxes are accounted for under the asset and liability method as prescribed by ASC Topic 740: Income Taxes (“ASC 740”). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities, and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance, when in the Company’s opinion it is likely that some portion or the entire deferred tax asset will not be realized. Pursuant to ASC Topic 740-10: Income Taxes related to the accounting for uncertainty in income taxes, the evaluation of a tax position is a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likelihood of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. The accounting standard also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures, and transition. The adoption had no effect on the Company’s consolidated financial statements. |
Stock Based Compensation | Stock Based Compensation Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the consolidated financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award. Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.” The expense is recognized over the service period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date. The Company recorded stock based compensation expense of $0 during the six months ended June 30, 2017 and 2016. |
Loan Costs | Loan Costs The Company has early adopted ASU 2015-3 “Interest – Imputation of Interest” - Simplifying the Presentation of Debt Issuance Costs. The loan costs are recorded as a debt discount and amortized to interest expense over the terms of the note payable. |
Revenue Recognition | Revenue recognition The Company follows the guidance of the FASB ASC 605-10-S99 “Revenue Recognition Overall – SEC Materials. The Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectibility is reasonably assured. When a customer order contains multiple items such as hardware, software, and services which are delivered at varying times, the Company determines whether the delivered items can be considered separate units of accounting. Delivered items should be considered separate units of accounting if delivered items have value to the customer on a standalone basis, there is objective and reliable evidence of the fair value of undelivered items, and if delivery of undelivered items is probable and substantially in the Company’s control. Sales are recorded net of discounts and discounts are determined to be immaterial. The following policies reflect specific criteria for the various revenue streams of the Company: Revenue is recognized upon completion of conferencing services. The Company generally does not charge up-front fees and bills its customers based on usage. Revenue for video equipment sales and security surveillance equipment sales is recognized upon delivery and installation. Due to the nature of the Company’s business it is not practicable to return products therefore the Company has determined that it is not necessary to provide a provision for sales returns and allowances. The Company’s manufacturers provide the highest quality products available. If there is a defect in a product related to materials or workmanship the Company extends the manufacturer’s warranty to its customers. To date this process has never occurred. Therefore no warranty liability is recorded. Revenue from periodic maintenance agreements is generally recognized ratably over the respective maintenance periods provided no significant obligations remain and collectibility of the related receivable is probable. |
Cost of Sales | Cost of Sales Cost of sales includes cost of products and cost of service. Product cost includes the cost of products and delivery costs. Cost of services includes labor and fuel expenses. |
Concentrations of Credit Risk and Major Customers | Concentrations of Credit Risk and Major Customers Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. The Company places its cash with high credit quality financial institutions. Almost all of the Company’s sales are credit sales which are primarily to customers whose ability to pay is dependent upon the industry economics prevailing in these areas. The Company also performs ongoing credit evaluations of its customers to help further reduce credit risk. During the six months ended June 30, 2017, one customer accounted for 35% of revenues. During the six months ended June 30, 2016, three customers accounted for 50% of revenues. The following is a list of percentage of revenue generated by the three customers: Customer 1 10 % Customer 2 11 % Customer 3 29 % Total 50 % As of June 30, 2017, three customers accounted for 89% of total accounts receivable. The following is a list of percentage of accounts receivable owed by the two customers: Customer 1 45 % Customer 2 33 % Customer 3 11 % Total 89 % As of December 31, 2016, three customers accounted for 39% of total accounts receivable. The following is a list of percentage of accounts receivable owed by the three customers: Customer 1 13 % Customer 2 13 % Customer 3 13 % Total 39 % |
Research and Development | Research and Development Research is planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service (hereinafter “product”) or a new process or technique (hereinafter “process”) or in bringing about a significant improvement to an existing product or process. Development is the translation of research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or use. It includes the conceptual formulation, design, and testing of product alternatives, construction of prototypes, and operation of pilot plants. It does not include routine or periodic alterations to existing products, production lines, manufacturing processes, and other on-going operations even though those alterations may represent improvements and it does not include market research or market testing activities. Per FASB ASC 730, the Company expenses research and development cost as incurred. |
Related Parties | Related Parties Parties are considered to be related to the Company if the parties that, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions. All transactions shall be recorded at fair value of the goods or services exchanged. Property purchased from a related party is recorded at the cost to the related party and any payment to or on behalf of the related party in excess of the cost is reflected as a distribution to related party. |
Net Income Per Common Share | Net Income per Common Share Net income per common share is calculated in accordance with ASC Topic 260: Earnings Per Share (“ASC 260”). Basic income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. The computation of diluted net earnings per share does not include dilutive common stock equivalents in the weighted average shares outstanding as they would be anti-dilutive. At June 30, 2017 the Company had 157,897,092 share equivalents issuable pursuant to embedded conversion features. At December 31, 2016 the Company had 29,733,748 share equivalents issuable pursuant to embedded conversion features. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not expect the future adoption of any such pronouncements to have a significant impact on the results of operations, financial condition or cash flows, except as described below. In May 2014, the FASB issued an update (“ASU 2014-09”) Revenue from Contracts with Customers. In February 2016, the FASB issued Accounting Standards Update, Leases (Topic 842), intended to improve financial reporting about leasing transactions. The ASU affects all companies and other organizations that lease assets such as real estate, airplanes, and manufacturing equipment. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current Generally Accepted Accounting Principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the statement of assets, liabilities, and members’ equity (deficit)—the new ASU will require both types of leases to be recognized on the statement of assets, liabilities, and members’ equity (deficit). The ASU on leases will take effect for all non-public companies for fiscal years beginning after December 15, 2019. The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Basis of Presentation and Sum26
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Fair Value of Assets Acquired and Liabilities Assumed | The fair value of the assets acquired and liabilities assumed on April 20, 2017 in the acquisition are as follows: Assets acquired: Cash $ 59,389 Accounts receivable, net of allowance for doubtful accounts 201,846 Inventory 42,381 Other current assets 15,372 Property and equipment 203,496 Goodwill 2,093,259 Intangible assets 716,933 Total assets $ 3,332,676 Liabilities assumed: Accounts payable and accrued expenses $ 58,308 Credit card payable 102,906 Deferred Revenue 184,877 Line of Credit 232,689 Note payable - related party 830,000 Note payable 1,923,896 Total Liabilities 3,332,676 Purchase price (Cash) $ 0 |
Schedule of Pro Forma Consolidated Results of Operations | The following unaudited pro forma consolidated results of operations have been prepared as if the merger occurred on January 1, 2016: Six Months Ended June 30, 2017 Six Months Ended June 30, 2016 Net Revenues $ 2,561,213 $ 3,912,479 Net Loss $ (1,124,219 ) $ (4,438,937 ) Net Loss per Share $ (0.19 ) $ (2.08 ) |
Schedule of Concentrations of Credit Risk and Major Customers | During the six months ended June 30, 2016, three customers accounted for 50% of revenues. The following is a list of percentage of revenue generated by the three customers: Customer 1 10 % Customer 2 11 % Customer 3 29 % Total 50 % As of June 30, 2017, three customers accounted for 89% of total accounts receivable. The following is a list of percentage of accounts receivable owed by the two customers: Customer 1 45 % Customer 2 33 % Customer 3 11 % Total 89 % As of December 31, 2016, three customers accounted for 39% of total accounts receivable. The following is a list of percentage of accounts receivable owed by the three customers: Customer 1 13 % Customer 2 13 % Customer 3 13 % Total 39 % |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: Estimated life June 30, 2017 December 31, 2016 Computer Equipment 1 year $ 13,333 $ - Office Equipment 1 year 5,767 - Telephone System 1 year 9,729 - ERP Software 1 year 150,000 - Vehicles 1 year 22,667 - Furniture & Fixtures 2-3 years 2,000 2,771 Less: Accumulated depreciation (42,186 ) (2,771 ) Leasehold Improvements 2 years - 26,901 Less: Accumulated amortization - (26,901 ) $ 161,310 $ - |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of the following: June 30, 2017 Useful Lives Intangible assets: Goodwill $ 2,095,258 Customer Relationships 84,867 4 years Brand 139,200 8 years Technology 175,681 1 years Non-Compete Agreements 316,200 3 years Total 2,811,206 Less: Accumulated amortization (65,824 ) 2,745,382 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | The following table displays the accrued expenses by category. June 30, 2017 December 31, 2016 Operating Expenses $ 33,438 $ 28,433 Lease Abandonment - 164,375 Employee Commissions 19,344 79,934 Interest 616,317 463,218 Salaries 1,616,851 1,476,917 Sales Tax Payable 53,400 46,771 Payroll Liabilities 112,389 86,873 $ 2,451,739 $ 2,346,521 |
Convertible Promissory Notes (T
Convertible Promissory Notes (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Promissory Notes | Convertible promissory notes consisted of the following: June 30, 2017 December 31, 2016 Secured convertible promissory notes $ 2,856,848 $ 2,801,875 Debt discount liability (180,363 ) (282,217 ) Debt discount original issue discount (11,125 ) (20,686 ) Debt discount deferred financing (2,979 ) (6,399 ) Secured convertible promissory notes– net $ 2,662,381 $ 2,492,573 |
Derivative Liability (Tables)
Derivative Liability (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Reconciliation of Derivative Liability Measured at Fair Value Recurring Basis Using Significant Unobservable Inputs | The following table presents a reconciliation of the derivative liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) from December 31, 2015 to June 30, 2017: Conversion feature derivative liability Balance at December 31, 2015 $ 3,718,242 Initial fair value of derivative liability recorded as debt discount 772,118 Initial fair value of derivative liability charged to other expense 348,244 Reclass of derivative liability to additional paid in capital due to conversions (840,039 ) Loss on change in fair value included in earnings 958,072 Balance at December 31, 2016 4,956,637 Initial fair value of derivative liability recorded as debt discount 127,894 Initial fair value of derivative liability charged to other expense 237,085 Reclass of derivative liability to additional paid in capital due to conversions (279,209 ) Loss on change in fair value included in earnings 27,608 Balance at June 30, 2017 $ 5,070,015 |
Assumptions for Determining Fair Value of Convertible Instruments | The Company used the following assumptions for determining the fair value of the convertible instruments granted under the Black-Scholes option pricing model: From January, 2017 to June 30, 2017 Expected volatility 319% - 455 % Expected term 3 – 12 months Risk-free interest rate 0.02% - 0.09 % Expected dividend yield 0 % |
Basis of Presentation and Sum32
Basis of Presentation and Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Notes payable | $ 1,923,896 | $ 1,923,896 | |||
Note Payable – related party | 830,000 | $ 830,000 | |||
Reverse stock split | 1-200 Reverse Stock Split | ||||
Non-controlling interest | 28,785 | $ 28,785 | $ (2,740) | ||
Federal deposit insurance corporation ("FDIC") limit | 250,000 | ||||
Accounts receivable net | 160,000 | 160,000 | 120,000 | ||
Expenses related to uncollectible accounts receivable | $ 450 | $ 450 | 106,898 | ||
Advertising expenses | 3,474 | 122,209 | |||
Shipping costs | |||||
Inventory on hand | $ 87,685 | 87,685 | $ 29,953 | ||
Impairment charges | |||||
Income tax benefit likelihood of being realized upon ultimate settlement percentage | greater than 50% | ||||
Stock based compensation | $ 25,000 | ||||
Concentration risk percentage | 35.00% | ||||
Embedded conversion features | 157,897,092 | 29,733,748 | |||
Noncontrolling Interest [Member] | |||||
Majority voting interest | 42.00% | 42.00% | |||
Noncontrolling Interest [Member] | Chief Executive Officer [Member] | |||||
Majority voting interest | 12.00% | 12.00% | |||
Subsidiaries [Member] | |||||
Majority voting interest | 58.00% | 58.00% | |||
Effective Date of the Purchase Agreement [Member] | |||||
Cash purchase price | $ 150,000 | ||||
Purchase Agreement [Member] | |||||
Cash purchase price | 2,000 | ||||
Number of shares converted | 1,000,000 | ||||
Maximum purchase Price | $ 500,000 | ||||
Cash flow payments, percentage | 5.00% | ||||
Employment Agreement [Member] | Acquisition Event One [Member] | |||||
Cash receivable by seller | $ 300,000 |
Basis of Presentation and Sum33
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Fair Value of assets acquired and liabilities assumed (Details) | Apr. 20, 2017USD ($) |
Accounting Policies [Abstract] | |
Cash | $ 59,389 |
Accounts receivable, net of allowance for doubtful accounts | 201,846 |
Inventory | 42,381 |
Other current assets | 15,372 |
Property and equipment | 203,496 |
Goodwill | 2,093,259 |
Intangible assets | 716,933 |
Total assets | 3,332,676 |
Accounts payable and accrued expenses | 58,308 |
Credit card payable | 102,906 |
Deferred Revenue | 184,877 |
Line of Credit | 232,689 |
Note payable - related party | 830,000 |
Note payable | 1,923,896 |
Total Liabilities | 3,332,676 |
Purchase price (Cash) | $ 0 |
Basis of Presentation and Sum34
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Pro Forma Consolidated Results of Operations (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Accounting Policies [Abstract] | ||
Net Revenues | $ 2,561,213 | $ 3,912,479 |
Net Loss | $ (1,124,219) | $ (4,438,937) |
Net Loss per Share | $ (0.19) | $ (2.08) |
Basis of Presentation and Sum35
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Concentrations of Credit Risk and Major Customers (Details) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Concentrations of Credit Risk and Major Customers | 35.00% | ||
Revenue [Member] | Three Customers [Member] | |||
Concentrations of Credit Risk and Major Customers | 50.00% | ||
Revenue [Member] | Customer 1 [Member] | Three Customers [Member] | |||
Concentrations of Credit Risk and Major Customers | 10.00% | ||
Revenue [Member] | Customer 2 [Member] | Three Customers [Member] | |||
Concentrations of Credit Risk and Major Customers | 11.00% | ||
Revenue [Member] | Customer 3 [Member] | Three Customers [Member] | |||
Concentrations of Credit Risk and Major Customers | 29.00% | ||
Accounts Receivable [Member] | Three Customers [Member] | |||
Concentrations of Credit Risk and Major Customers | 89.00% | 39.00% | |
Accounts Receivable [Member] | Customer 1 [Member] | Three Customers [Member] | |||
Concentrations of Credit Risk and Major Customers | 45.00% | 13.00% | |
Accounts Receivable [Member] | Customer 2 [Member] | Three Customers [Member] | |||
Concentrations of Credit Risk and Major Customers | 33.00% | 13.00% | |
Accounts Receivable [Member] | Customer 3 [Member] | Three Customers [Member] | |||
Concentrations of Credit Risk and Major Customers | 11.00% | 13.00% |
Basis of Presentation and Sum36
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Concentrations of Credit Risk and Major Customers (Details) (Parenthetical) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Concentrations of Credit Risk and Major Customers | 35.00% | ||
Three Customers [Member] | Accounts Receivable [Member] | |||
Concentrations of Credit Risk and Major Customers | 89.00% | 39.00% | |
Revenue [Member] | Three Customers [Member] | |||
Concentrations of Credit Risk and Major Customers | 50.00% |
Going Concern Considerations (D
Going Concern Considerations (Details Narrative) - USD ($) | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accumulated deficit | $ 28,457,764 | $ 27,844,136 | |
Stockholders' deficit | 10,254,550 | $ 10,116,788 | |
Working capital deficiency | 12,400,000 | ||
Net cash used in operating activities | $ 157,074 | $ 805,548 |
Inventory (Details Narrative)
Inventory (Details Narrative) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Inventory | $ 87,685 | $ 29,953 |
Property and Equipment (Details
Property and Equipment (Details Narrative) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Nov. 30, 2015USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | Aug. 31, 2015USD ($) | Jun. 30, 2014USD ($)ft² | |
Property, Plant and Equipment [Abstract] | ||||||||
Depreciation and amortization expense | $ 42,186 | $ 3,363 | $ 42,186 | $ 6,725 | $ 6,725 | |||
Area of office space leased | ft² | 3,000 | |||||||
Leasehold improvements | $ 26,901 | $ 14,453 | $ 12,448 | |||||
Straight-line basis lease commitment period | 2 years | |||||||
Lease term | July 2014 and August 2015 | |||||||
Monthly rent | $ 5,000 | $ 22,742 | ||||||
Increase monthly rent | $ 6,460 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2017 | Dec. 31, 2016 | Aug. 31, 2015 | Jun. 30, 2014 | |
Less: Accumulated amortization | $ (42,186) | $ (2,771) | ||
Leasehold Improvements | 26,901 | $ 14,453 | $ 12,448 | |
Less: Accumulated depreciation | (26,901) | |||
Property Plant and Equipment Net | 161,310 | |||
Computer Equipment [Member] | ||||
Property, plant and equipment, gross | $ 13,333 | |||
Estimated Life | 1 year | |||
Office Equipment [Member] | ||||
Property, plant and equipment, gross | $ 5,767 | |||
Estimated Life | 1 year | |||
Telephone System [Member] | ||||
Property, plant and equipment, gross | $ 9,729 | |||
Estimated Life | 1 year | |||
ERP Software [Member] | ||||
Property, plant and equipment, gross | $ 150,000 | |||
Estimated Life | 1 year | |||
Vehicles [Member] | ||||
Property, plant and equipment, gross | $ 22,667 | |||
Estimated Life | 1 year | |||
Furniture & Fixtures [Member] | ||||
Property, plant and equipment, gross | $ 2,000 | $ 2,771 | ||
Furniture & Fixtures [Member] | Minimum [Member] | ||||
Estimated Life | 2 years | |||
Furniture & Fixtures [Member] | Maximum [Member] | ||||
Estimated Life | 3 years | |||
Leasehold Improvements [Member] | ||||
Estimated Life | 2 years |
Intangible Assets (Details Narr
Intangible Assets (Details Narrative) | 2 Months Ended |
Jun. 30, 2017USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Amortization expense of intangible assets | $ 65,824 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Intangible assets, net | $ 650,124 | |
Purchase Agreement [Member] | ||
Total | 2,811,206 | |
Less: Accumulated amortization | (65,824) | |
Intangible assets, net | 2,745,382 | |
Purchase Agreement [Member] | Goodwill [Member] | ||
Total | 2,095,258 | |
Purchase Agreement [Member] | Customer Relationships [Member] | ||
Total | $ 84,867 | |
Intangible assets useful lives | 4 years | |
Purchase Agreement [Member] | Brand [Member] | ||
Total | $ 139,200 | |
Intangible assets useful lives | 8 years | |
Purchase Agreement [Member] | Technology [Member] | ||
Total | $ 175,681 | |
Intangible assets useful lives | 1 year | |
Purchase Agreement [Member] | Non-Compete Agreements [Member] | ||
Total | $ 316,200 | |
Intangible assets useful lives | 3 years |
Line of Credit (Details Narrati
Line of Credit (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Proceeds from line of credit | $ 30,000 | ||
Repayments of line of credit | 2,396 | ||
Purchase Agreement [Member] | |||
Revolving line of credit | $ 350,000 | ||
Revolving line of credit, expiration date | Apr. 7, 2018 | ||
Line of credit interest rate | 5.12% | ||
Line of credit outstanding | $ 260,000 |
Note Payable - Related Party (D
Note Payable - Related Party (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Short term notes payable to related party | $ 52,000 | |
Purchase Agreement [Member] | ||
Short term notes payable to related party | 830,000 | |
Employment Agreement [Member] | ||
Calculated cash payout | 2,000 | |
Business combination, consideration | 150,000 | |
Debt instrument, periodic payment | $ 50,000 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | Apr. 20, 2017 | Mar. 06, 2017 | Sep. 15, 2016 | Feb. 29, 2016 | Jan. 31, 2010 | Nov. 30, 2009 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2012 |
Unsecured notes payable | $ 165,250 | |||||||||
Payment of note payable | 29,139 | $ 9,900 | ||||||||
Note payable balance | 2,070,549 | $ 116,792 | ||||||||
Accrued interest on notes payable | 5,580 | |||||||||
OID amount | 170,831 | $ 324,895 | 619,287 | |||||||
Purchase Agreement [Member] | ||||||||||
Note payable balance | 2,021,837 | 116,792 | ||||||||
Promisory Note [Member] | ||||||||||
Unsecured notes payable | $ 66,667 | $ 25,000 | ||||||||
Note payable bears interest rate | 10.00% | 10.00% | ||||||||
Note payable mature date | Aug. 6, 2017 | Dec. 22, 2016 | ||||||||
Demand notes | 0 | |||||||||
Minimum guaranteed interest amount | $ 2,500 | |||||||||
Original issue discount promissory note amount, net | 64,367 | |||||||||
OID amount | $ 6,667 | 1,999 | ||||||||
Deferred financing | $ 1,000 | 300 | ||||||||
Notes Payable [Member] | ||||||||||
Accrued interest on notes payable | 66,000 | 57,000 | ||||||||
Notes Payable [Member] | Purchase Agreement [Member] | ||||||||||
Note payable bears interest rate | 4.35% | |||||||||
Note payable mature date | Apr. 30, 2025 | |||||||||
Note payable balance | 1,890,390 | |||||||||
Note payable assumed | $ 1,923,896 | |||||||||
Regal Capital [Member] | ||||||||||
Demand notes | $ 116,792 | 116,792 | $ 116,792 | |||||||
Demand notes bearing interest rate | 12.00% | |||||||||
Unsecured Notes Payable [Member] | ||||||||||
Unsecured notes payable | $ 20,000 | |||||||||
Debt conversion price per share | $ 0.05 | |||||||||
Note payable bears interest rate | 6.00% | |||||||||
Note payable mature date | Jan. 31, 2011 | May 31, 2010 | ||||||||
Payment of note payable | $ 19,133 | |||||||||
Note payable balance | 9,900 | $ 0 | ||||||||
Accrued interest on notes payable | $ 9,233 |
Short Term Advances (Details Na
Short Term Advances (Details Narrative) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Short term advances | $ 146,015 | $ 146,015 |
Accrued Expenses (Details Narra
Accrued Expenses (Details Narrative) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 2,451,739 | $ 2,346,521 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Operating Expenses | $ 33,438 | $ 28,433 |
Lease Abandonment | 164,375 | |
Employee Commissions | 19,344 | 79,934 |
Interest | 616,317 | 463,218 |
Salaries | 1,616,851 | 1,476,917 |
Sales Tax Payable | 53,400 | 46,771 |
Payroll Liabilities | 112,389 | 86,873 |
Total | $ 2,451,739 | $ 2,346,521 |
Convertible Promissory Notes (D
Convertible Promissory Notes (Details Narrative) - USD ($) | Jun. 23, 2017 | Jun. 08, 2017 | May 24, 2017 | Apr. 28, 2017 | Apr. 10, 2017 | Feb. 03, 2017 | Feb. 02, 2017 | Jan. 31, 2017 | Jan. 17, 2017 | Dec. 23, 2016 | Nov. 18, 2016 | Oct. 28, 2016 | Oct. 18, 2016 | Sep. 02, 2016 | Jul. 29, 2016 | Jul. 20, 2016 | Jun. 24, 2016 | May 23, 2016 | Apr. 02, 2016 | Mar. 07, 2016 | Feb. 29, 2016 | Feb. 05, 2016 | Jan. 19, 2016 | Dec. 18, 2015 | Nov. 18, 2015 | Oct. 19, 2015 | Jul. 23, 2015 | Jul. 15, 2015 | Jul. 02, 2015 | Jun. 15, 2015 | Jun. 05, 2015 | May 27, 2015 | May 15, 2015 | May 05, 2015 | Feb. 11, 2015 | Dec. 19, 2014 | Oct. 27, 2014 | Jan. 16, 2014 | Dec. 11, 2013 | Oct. 10, 2013 | Jun. 30, 2017 | Jan. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | May 31, 2016 | Apr. 30, 2016 | Mar. 31, 2016 | Feb. 29, 2016 | Jan. 31, 2016 | Dec. 31, 2015 | Oct. 31, 2015 | Sep. 30, 2015 | Aug. 31, 2015 | May 31, 2015 | Apr. 30, 2015 | Mar. 31, 2015 | Jan. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Feb. 28, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2009 | Jun. 30, 2015 | Oct. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | May 31, 2013 |
Debt discount amount | $ 11,125 | $ 20,686 | $ 11,125 | $ 20,686 | $ 11,125 | $ 20,686 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of note payable | $ 54,989 | 50,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | 170,831 | 324,895 | 619,287 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal balance of note payable | 1,923,896 | 1,923,896 | 1,923,896 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest | 5,580 | 5,580 | $ 5,580 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares issued upon coversion | 3,704,786 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of debt discount | 78,181 | $ 523,536 | $ 231,731 | $ 1,079,285 | 1,721,296 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Twenty Four [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 47,500 | 45,474 | 32,974 | 45,474 | 32,974 | 45,474 | 32,974 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 52,632 | 52,632 | 52,632 | 52,632 | 52,632 | 52,632 | 52,632 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 5 months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 60.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 65,144 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 2,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 17,776 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Twenty Five[Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 71,250 | 60,601 | 41,850 | 60,601 | 41,850 | 60,601 | 41,850 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 78,947 | 78,947 | 78,947 | 78,947 | 78,947 | 78,947 | 78,947 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 4 months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 60.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 84,205 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 3,750 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 15,653 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Twenty Six [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 47,500 | 28,194 | 10,651 | 28,194 | 10,651 | 28,194 | 10,651 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 52,632 | 52,632 | 52,632 | 52,632 | 52,632 | 52,632 | 52,632 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 18 months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 60.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 56,141 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 2,632 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 8,641 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Twenty Seven [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 47,500 | 26,623 | 9,079 | 26,623 | 9,079 | 26,623 | 9,079 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 52,632 | 52,632 | 52,632 | 52,632 | 52,632 | 52,632 | 52,632 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 18 months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 60.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 56,137 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 2,632 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | 8,637 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred financing cost | $ 2,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Twenty Eight [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 25,000 | 16,132 | 5,340 | 16,132 | 5,340 | 16,132 | 5,340 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 157,895 | 32,895 | 32,895 | 32,895 | 32,895 | 32,895 | 32,895 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 12 months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 60.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 35,086 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 7,895 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | 10,086 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Twenty Eight [Member] | Tranche 1 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal balance of note payable | $ 32,895 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Twenty Eight [Member] | Tranche 2 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 12 years | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 26,665 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal balance of note payable | 25,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | 5,165 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred financing cost | $ 3,500 | 20,833 | 8,333 | 20,833 | 8,333 | 20,833 | 8,333 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Twenty Eight [Member] | Tranche 3 [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 15,000 | 15,000 | 15,000 | 15,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 12 months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 25,835 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 25,835 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Twenty Nine [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest per annum based on default provision | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 25,000 | 26,316 | 10,965 | 26,316 | 10,965 | 26,316 | 10,965 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 26,316 | 26,316 | 26,316 | 26,316 | 26,316 | 26,316 | 26,316 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 70.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 36,709 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 1,316 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 11,709 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Thirty [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest per annum based on default provision | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 26,316 | 26,316 | 7,455 | 26,316 | 7,455 | 26,316 | 7,455 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 26,316 | 26,316 | 26,316 | 26,316 | 26,316 | 26,316 | 26,316 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 70.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 36,709 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 1,316 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 10,393 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Thirty One [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest per annum based on default provision | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 25,000 | 26,316 | 6,579 | 26,316 | 6,579 | 26,316 | 6,579 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 26,316 | 26,316 | 26,316 | 26,316 | 26,316 | 26,316 | 26,316 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 70.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 36,709 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 1,316 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 11,709 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Thirty Two [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest per annum based on default provision | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | 50,397 | 49,108 | 50,397 | 49,108 | 50,397 | 49,108 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 51,579 | 51,579 | 51,579 | 51,579 | 51,579 | 51,579 | 51,579 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 70.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 84,398 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 2,579 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 84,398 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Thirty Three [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest per annum based on default provision | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | 15,344 | 15,344 | 15,344 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 15,750 | 15,156 | 15,156 | 15,156 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 60.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 25,772 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 750 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 25,772 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Thirty Four [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest per annum based on default provision | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | 26,316 | 26,316 | 26,316 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 26,316 | 26,316 | 26,316 | 26,316 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 4 months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 60.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 43,061 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 1,316 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 43,061 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Thirty Five [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest per annum based on default provision | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | 21,053 | 21,053 | 21,053 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 21,053 | 21,053 | 21,053 | 21,053 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 60.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 34,449 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 1,053 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 34,449 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Thirty Six [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest per annum based on default provision | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 14,210 | 4,123 | 4,123 | 4,123 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 15,789 | 15,789 | 15,789 | 15,789 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 6 months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 60.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 25,835 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 789 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 11,643 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Thirty Seven [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest per annum based on default provision | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 28,421 | 6,746 | 6,746 | 6,746 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 31,578 | 31,579 | 31,579 | 31,579 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 6 months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 60.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 52,502 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 1,579 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 24,081 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Thirty Eight [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest per annum based on default provision | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 28,421 | 4,662 | 4,662 | 4,662 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 31,578 | 31,579 | 31,579 | 31,579 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 6 months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 60.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 52,503 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 1,579 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 24,081 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Thirty NIne [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest per annum based on default provision | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 18,947 | 1,886 | 1,886 | 1,886 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 21,053 | 21,053 | 21,053 | 21,053 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 6 months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 60.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 35,002 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 1,053 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 16,055 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Fourty [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest per annum based on default provision | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 37,895 | 3,772 | 3,772 | 3,772 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 42,105 | $ 42,105 | $ 42,105 | $ 42,105 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 60.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 70,003 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 2,105 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 32,108 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 0.34 | $ 0.34 | $ 0.34 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 0.012 | $ 0.012 | $ 0.012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Notes [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassified unsecured notes payable from long-term to short-term | $ 45,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of reclassified unsecured notes payable from long-term to short-term | 3.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest per annum based on default provision | 12.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 0.02 | $ 0.02 | $ 0.02 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 45,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note holder converted into common shares, amount | $ 990 | $ 764 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note holder assigned note balance to third party | $ 20,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured note payable | $ 23,246 | 23,246 | $ 23,246 | 23,246 | $ 23,246 | 23,246 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Notes [Member] | Minimum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable mature date | Jan. 31, 2010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Notes [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable mature date | Apr. 30, 2010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture One [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 0.15 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 8,333 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 6.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability and offsetting debt discount | $ 8,333 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Two [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 0.16 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 6.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability and offsetting debt discount | $ 23,958 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Three [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 25,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | 25,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 6.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability and offsetting debt discount | $ 51,848 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 50.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 26,848 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Four [Member] | Three Notes [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 3.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 | $ 50,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayment of note payable | $ 50,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Five[Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 18,400 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 21,600 | 21,600 | 21,600 | 21,600 | 21,600 | 21,600 | 21,600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 60.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 311,662 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture converted at lower price | $ 0.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 25 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 1,600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Six [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 0.80 | $ 0.80 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 5,017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note holder converted into common shares, amount | $ 27,174 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 27,174 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 60.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 5,017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture converted at lower price | $ 0.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 25 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 2,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal balance of note payable | 2,174 | $ 2,174 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest | $ 2,795 | $ 2,795 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares issued upon coversion | 559,006 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Six [Member] | Third Party [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 7 | $ 21 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note holder converted into common shares, amount | $ 17,200 | $ 17,200 | $ 1,300 | $ 1,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured note payable | 0 | 0 | $ 4,989 | 0 | 0 | $ 4,989 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest | 4,489 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible note holder assigned to another note holder | $ 20,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares issued upon coversion | 1,985 | 1,985 | 185 | 48 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Six [Member] | Minimum [Member] | Third Party [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 5.60 | $ 5.60 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Six [Member] | Maximum [Member] | Third Party [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 11 | $ 11 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Seven [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 8.12 | $ 8.82 | $ 9.66 | $ 9.66 | $ 8.12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 50,348 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note holder converted into common shares, amount | $ 14,696 | $ 10,000 | $ 24,000 | $ 10,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured note payable | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 54,348 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 8.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability and offsetting debt discount | $ 119,940 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 60.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 69,940 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture converted at lower price | $ 0.50 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 25 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 4,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares issued upon coversion | 1,814 | 1,134 | 2,484 | 1,035 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Seven [Member] | Third Party [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note holder assigned note balance to third party | $ 4,348 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principal balance of note payable | $ 58,696 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Eight [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 5.12 | $ 5.12 | $ 11.28 | $ 11.28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 110,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note holder converted into common shares, amount | $ 27,117 | $ 65,673 | $ 23,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 115,789 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 70.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 147,775 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 5,789 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest | $ 11,579 | $ 11,579 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares issued upon coversion | 2,266 | 4,710 | 2,041 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | 37,775 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net of debt discount and deferred financing | $ 10,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Eight [Member] | Minimum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 13.72 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Eight [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 11.22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Nine [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 50,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 52,632 | 52,632 | 52,632 | 52,632 | 52,632 | 52,632 | 52,632 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 70.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 67,171 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 2,632 | $ 32,895 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 17,171 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Ten [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 50,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 52,632 | 52,632 | 52,632 | 52,632 | 52,632 | 52,632 | 52,632 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 70.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 67,171 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 2,632 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 17,171 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Eleven [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 50,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 52,632 | 52,632 | 52,632 | 52,632 | 52,632 | 52,632 | 52,632 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 70.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 67,171 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 2,632 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 17,171 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Twelve [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 0.084 | $ 0.084 | $ 1.26 | $ 1.26 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 142,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note holder converted into common shares, amount | $ 5,000 | 85,620 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 5,280 | $ 157,895 | $ 0 | $ 5,280 | 5,280 | $ 0 | 5,280 | $ 0 | 5,280 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 70.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 201,512 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 7,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares issued upon coversion | 62,857 | 3,968 | 680,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | 59,406 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net of debt discount and deferred financing | $ 1,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Twelve [Member] | Minimum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 0.084 | $ 0.084 | $ 0.084 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Twelve [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 0.52 | $ 0.52 | $ 0.52 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Thirteen [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 142,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 157,895 | $ 157,895 | 157,895 | $ 157,895 | 157,895 | $ 157,895 | 157,895 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 70.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 201,512 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 7,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 59,406 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Fourteen [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 0.036 | $ 0.036 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 142,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note holder converted into common shares, amount | $ 22,421 | $ 9,720 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 157,895 | 125,754 | 148,175 | 125,754 | 148,175 | 125,754 | 148,175 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 70.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 201,512 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 7,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares issued upon coversion | 386,510 | 27,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 59,406 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Fourteen [Member] | Minimum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 0.03 | $ 0.03 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Fourteen [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | 0.084 | $ 0.084 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Fifteen [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 3.08 | $ 5.02 | $ 9.64 | 9.64 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 429,439 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note holder converted into common shares, amount | $ 40,100 | $ 14,000 | $ 15,000 | $ 70,000 | 29,700 | $ 19,600 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 429,439 | 241,039 | $ 281,139 | 241,039 | $ 281,139 | 241,039 | $ 281,139 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 55.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 707,603 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares issued upon coversion | 771,429 | 4,545 | 2,997 | 7,273 | 254,500 | 52,216 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 278,164 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Fifteen [Member] | Minimum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | 0.034 | $ 0.034 | $ 0.082 | $ 0.242 | $ 0.082 | $ 0.242 | $ 0.082 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Fifteen [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 0.078 | $ 0.078 | $ 2.42 | 0.76 | $ 2.42 | $ 0.76 | $ 2.42 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Sixteen [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 10.50 | $ 3.36 | $ 5.04 | $ 10.50 | $ 10.50 | $ 10.50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note holder converted into common shares, amount | 13,800 | $ 42,000 | $ 10,895 | $ 15,000 | $ 20,000 | $ 20,000 | $ 27,500 | $ 15,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | 309,490 | $ 365,289 | 309,490 | 365,289 | 309,490 | $ 365,289 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest | $ 4,200 | $ 2,000 | $ 1,380 | $ 4,200 | $ 2,750 | $ 1,089 | $ 1,500 | $ 2,000 | $ 2,000 | $ 1,380 | $ 2,750 | $ 2,000 | $ 1,380 | $ 2,750 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares issued upon coversion | 574,613 | 1,093,125 | 3,566 | 3,273 | 2,095 | 2,095 | 285,083 | 35,138 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Sixteen [Member] | Minimum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 0.036 | $ 0.024 | $ 0.036 | $ 0.08 | 0.252 | $ 0.024 | $ 0.08 | $ 0.252 | $ 0.024 | $ 0.08 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Sixteen [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 0.08 | $ 0.029 | $ 0.08 | $ 0.252 | $ 1.20 | $ 0.029 | $ 0.252 | $ 1.20 | $ 0.029 | $ 0.252 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Seventeen [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 142,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 157,500 | $ 157,895 | $ 157,895 | $ 157,895 | $ 157,895 | $ 157,895 | $ 157,895 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 55.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 259,764 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 7,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 117,264 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net of debt discount and deferred financing | 157,895 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Eightteen [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 142,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 157,500 | 157,895 | 157,895 | 157,895 | 157,895 | 157,895 | 157,895 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 55.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 259,764 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 7,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 117,264 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net of debt discount and deferred financing | 157,895 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Nineteen [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 237,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 263,158 | 263,158 | $ 263,158 | 263,158 | $ 263,158 | 263,158 | $ 263,158 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 70.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 335,598 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 12,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 98,756 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Twenty [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 0.084 | $ 0.084 | $ 0.084 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 95,000 | 61,111 | $ 91,244 | 61,111 | $ 91,244 | 61,111 | $ 91,244 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note holder converted into common shares, amount | $ 34,300 | 15,700 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 111,111 | $ 61,111 | 94,411 | $ 61,111 | 94,411 | $ 61,111 | $ 94,411 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 70.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 141,697 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 5,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares issued upon coversion | 550,396 | 186,904 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 52,808 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Twenty [Member] | Minimum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 0.036 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Twenty [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 0.084 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Twenty One [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares conversion price | $ 0.012 | $ 0.012 | $ 0.012 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 142,500 | $ 150,545 | 145,395 | $ 150,545 | 145,395 | $ 150,545 | $ 145,395 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note holder converted into common shares, amount | 7,350 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 157,895 | $ 132,895 | 157,895 | 132,895 | 157,895 | 132,895 | 157,895 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 70.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 201,359 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 7,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of common stock shares issued upon coversion | 262,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 59,254 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Twenty Two [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 112,940 | $ 118,573 | 93,869 | 118,573 | 93,869 | 118,573 | 93,869 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 118,573 | 118,573 | 118,573 | 118,573 | 118,573 | 118,573 | 118,573 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 1 year | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 70.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 151,213 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 5,632 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 38,569 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Debenture Twenty Three [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt discount amount | $ 95,000 | 105,263 | 80,263 | 105,263 | 80,263 | 105,263 | 80,263 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture | $ 105,263 | $ 105,263 | $ 105,263 | $ 105,263 | $ 105,263 | $ 105,263 | $ 105,263 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note payable bears interest rate | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt maturity term | 6 months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of convertible debenture converts at lower price rate | 70.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liability | $ 108,185 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible debenture trading price period | 30 days | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Original issue discount | $ 5,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative expense | $ 13,448 |
Convertible Promissory Notes -
Convertible Promissory Notes - Schedule of Convertible Promissory Notes (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Secured convertible promissory notes | $ 2,856,848 | $ 2,801,875 |
debt discount liability | (180,363) | (282,217) |
debt discount original issue discount | (11,125) | (20,686) |
debt discount deferred financing | (2,979) | (6,399) |
Secured convertible promissory notes- net | $ 2,662,381 | $ 2,492,573 |
Derivative Liability (Details N
Derivative Liability (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Derivative liability | $ 5,070,015 | $ 4,956,637 | $ 3,718,242 |
Change in fair value included in earnings | $ 27,608 | $ 958,072 | |
Change in quoted market price of common stock | $ 0.20 | $ 0.042 |
Derivative Liability - Reconcil
Derivative Liability - Reconciliation of Derivative Liability Measured at Fair Value Recurring Basis Using Significant Unobservable Inputs (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Conversion feature derivative liability, Beginning | $ 4,956,637 | $ 3,718,242 |
Initial fair value of derivative liability recorded as debt discount | 127,894 | 772,118 |
Initial fair value of derivative liability charged to other expense | 237,085 | 348,244 |
Reclass of derivative liability to additional paid in capital due to conversions | (279,209) | (840,039) |
Loss on change in fair value included in earnings | 27,608 | 958,072 |
Conversion feature derivative liability, Ending | $ 5,070,015 | $ 4,956,637 |
Derivative Liability - Assumpti
Derivative Liability - Assumptions for Determining Fair Value of Convertible Instruments (Details) | 6 Months Ended |
Jun. 30, 2017 | |
Expected dividend yield | 0.00% |
Minimum [Member] | |
Expected volatility | 319.00% |
Expected term | 3 months |
Risk-free interest rate | 0.02% |
Maximum [Member] | |
Expected volatility | 455.00% |
Expected term | 12 months |
Risk-free interest rate | 0.09% |
Stockholders' Deficit (Details
Stockholders' Deficit (Details Narrative) - USD ($) | Jan. 06, 2016 | Jun. 30, 2017 | Dec. 31, 2016 |
Reverse stock split | 1-200 Reverse Stock Split | ||
Preferred stock par value | $ 0.0001 | $ 0.0001 | |
Preferred stock, authorized shares | 5,000,000 | 5,000,000 | |
Number of common stock shares issued upon coversion | 3,704,786 | ||
Principal of notes payable | $ 1,923,896 | ||
Stock issued during period, shares, employee benefit plan | 321,899 | ||
Stock issued during period, value, employee benefit plan | $ 60,932 | ||
Common stock issued for services | 31,899 | ||
Common stock value issued for services | $ 8,932 | ||
Common stock price per share | $ 0.20 | $ 0.042 | |
Principal amount | $ 165,250 | ||
Accrued interest | $ 5,580 | ||
Series A Preferred Stock [Member] | |||
Preferred stock par value | $ 0.001 | ||
Preferred stock voting rights description | Among other provisions, each one (1) share of the Series A Preferred Stock shall have voting rights equal to (x) 0.019607 multiplied by the total issued and outstanding shares of common stock of the Company eligible to vote at the time of the respective vote (the Numerator), divided by (y) 0.49, minus (z) the Numerator. For purposes of illustration only, if the total issued and outstanding shares of common stock of the Company eligible to vote at the time of the respective vote is 5,000,000, the voting rights of one share of the Series A Preferred Stock shall be equal to 102,036 (0.019607 x 5,000,000) / 0.49) (0.019607 x 5,000,000) = 102,036). | ||
Preferred stock, issued shares | 51 | 0 | |
Series A Preferred Stock [Member] | Roger Ralston [Member] | |||
Preferred stock, authorized shares | 51 | ||
Preferred stock, issued shares | 51 | ||
Convertible Notes Payable [Member] | |||
Number of common stock shares issued upon coversion | 1,715,178 | ||
Principal of notes payable | $ 593,983 | ||
Minimum [Member] | |||
Common stock price per share | $ 0.016 | ||
Common shares conversion price | 0.34 | ||
Minimum [Member] | Convertible Notes Payable [Member] | |||
Debt instruments upon conversion at contractual rate | $ 0.08 | ||
Maximum [Member] | |||
Common stock price per share | 0.30 | ||
Common shares conversion price | $ 0.012 | ||
Maximum [Member] | Convertible Notes Payable [Member] | |||
Debt instruments upon conversion at contractual rate | $ 14.22 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||
Nov. 30, 2016 | Jul. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Repaid the remaining balance | $ 8,334 | |||||
Due to related parties | 1,814 | $ 1,814 | ||||
Note Payable - related party | 52,000 | |||||
Chief Executive Officer [Member] | ||||||
Repaid the remaining balance | $ 603 | $ 1,809 | $ 48,478 | $ 0 | ||
Chief Executive Officer 1 [Member] | ||||||
Repaid the remaining balance | $ 1,809 | |||||
Former Chief Executive Officer [Member] | ||||||
Note Payable - related party | $ 830,000 |
Barter Revenue (Details Narrati
Barter Revenue (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Deferred Revenue Disclosure [Abstract] | ||
Barter revenue | $ 29,974 | $ 20,543 |
Accrued Payroll Taxes (Details
Accrued Payroll Taxes (Details Narrative) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2015 | Aug. 31, 2013 |
Payables and Accruals [Abstract] | ||||
Payroll taxes includes interest and penalties | $ 112,000 | $ 87,000 | ||
Paid outstanding payroll tax liabilities | $ 28,281 | $ 43,176 |
Segment Reporting (Details Narr
Segment Reporting (Details Narrative) | 6 Months Ended |
Jun. 30, 2017Segment | |
Segment Reporting [Abstract] | |
Number of operating segment | 1 |
Commitments (Details Narrative)
Commitments (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended |
Nov. 30, 2015 | Jun. 30, 2017 | |
Monthly rent expense | $ 5,000 | $ 22,742 |
Purchase Agreement [Member] | ||
Lease term description | Company assumed a lease for office space with a four year term beginning on April 1, 2015 and ending on March 31, 2019. | |
Monthly rent expense | $ 11,371 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Nov. 24, 2017 | Nov. 06, 2017 | Oct. 25, 2017 | Oct. 05, 2017 | Oct. 03, 2017 | Oct. 02, 2017 | Jul. 21, 2017 | Jul. 03, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Note payable amount | $ 2,070,549 | $ 116,792 | ||||||||
Promisory note principal balance | 165,250 | |||||||||
Original issue of discount | 11,125 | 20,686 | ||||||||
Accrued interest | $ 616,317 | $ 463,218 | ||||||||
Minimum [Member] | ||||||||||
Coversion price per share | $ 0.34 | |||||||||
Maximum [Member] | ||||||||||
Coversion price per share | $ 0.012 | |||||||||
Subsequent Event [Member] | ||||||||||
Existing note interest rate | 10.00% | |||||||||
Original issue of discount percentage | 5.00% | 60.00% | 5.00% | 5.00% | 5.00% | |||||
Debt conversion percentage | 60.00% | 55.00% | 60.00% | 60.00% | 60.00% | |||||
Note maturity date | Aug. 6, 2017 | |||||||||
Promisory note principal balance | $ 63,158 | $ 57,895 | $ 15,789 | $ 31,579 | ||||||
Debt maturity term | 1 year | 1 year | 1 year | 1 year | ||||||
Derivative liability | $ 105,005 | $ 96,254 | $ 26,251 | $ 52,502 | ||||||
Original issue of discount | 3,158 | 2,895 | 789 | 1,579 | ||||||
Derivative expense | $ 105,005 | $ 96,254 | $ 26,251 | $ 52,502 | ||||||
Debt maturity description | On October 3, 2017 the Company executed an agreement with a Note Holder (see Note 8) to extend the maturity date of a promissory note ad additional five months beyond the original maturity date of August 6, 2017. | |||||||||
Cost funding percentage | 20.00% | |||||||||
Cost funding description | The cost of funding is 20% over a six month term prorated to a five month term. | |||||||||
Number of restricted shares of common stock | 375,000 | |||||||||
Percentage of common stock discount to market | 30.00% | |||||||||
Number of common stock issued upon conversion | 3,793,076 | |||||||||
Conversion of convertible promissory notes | $ 32,609 | |||||||||
Accrued interest | $ 1,394 | |||||||||
Subsequent Event [Member] | Secured Promisory Note [Member] | ||||||||||
Note payable amount | $ 47,500 | |||||||||
Note maturity date | Aug. 15, 2017 | |||||||||
Promisory note principal balance | $ 95,000 | |||||||||
Subsequent Event [Member] | Note Holder [Member] | ||||||||||
Existing principal amount of note | $ 151,594 | |||||||||
Modified principal balance of note | $ 232,834 | |||||||||
Original issue of discount percentage | 60.00% | |||||||||
Debt conversion percentage | 55.00% | |||||||||
Subsequent Event [Member] | Minimum [Member] | ||||||||||
Existing note interest rate | 10.00% | |||||||||
Coversion price per share | $ 0.00357 | |||||||||
Subsequent Event [Member] | Maximum [Member] | ||||||||||
Existing note interest rate | 12.00% | |||||||||
Coversion price per share | $ 0.0196 |