| CONVERTIBLE NOTES [Text Block] | NOTE 7 – CONVERTIBLE NOTES
On July 23, 2014, the Company entered into an agreement with an lender whereby the lender could lend a principal sum up to $250,000
including an original issue discount (“OID”) of $25,000. Upon signing, the lender was required to pay $111,111
with the OID prorated based on the actual consideration paid. The lender may pay additional amounts at its own discretion. The OID on the $111,111
investment was $11,111
and was recorded as debt discount. In March 2015, the Company borrowed an additional $62,223
with and OID of $12,223
from the lender. If the Company pays the lender within
90
days then there is
0% interest, and if the Company pays after
90
days then there is a one-time interest charge of
12% applied to the outstanding balance. The maturity date is
2
years from the date of each borrowing and the outstanding balance and any interest is due and payable. The note is convertible into common shares of the Company. The conversion price is
60% of the lowest trade price of the
25
trading days prior to the conversion.
In the case that conversion shares are not deliverable, an additional
10% discount will apply; and if the shares are ineligible for deposit into the Depository Trust Company system and only eligible for Xclearing deposit, an additional
5% discount shall apply; and in the case of both, an additional cumulative
15% discount shall apply.
The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $153,702, a debt discount of $100,000
and recognized the difference as additional interest during the year ended December 31, 2014. The Company recorded a derivative liability of $95,613
for the amount borrowed in March 2015 with $50,000
being recorded as a debt discount and recognized the difference as additional interest expense. During the nine months ended September 30, 2015, the Company amortized $51,653
of the debt discount as interest expense and the lender converted $10,206
of debt for
9,450,000
shares.
The Company repaid the original borrowing of $111,111
and accrued interest of $13,333
in January 2015. The Company amortized the remaining debt discount of $86,605
on the original borrowing as interest expense on the date the note was repaid. The Company amortized $4,960
of the debt discount as interest expense on the $62,223
additional borrowing during the nine months ended September 30, 2015.
On October 3, 2014, the Company entered into an agreement with an lender whereby the lender loaned a principal sum of $115,000. Upon signing, the Company received $108,000
in cash and paid fees of $7,000
recorded as debt discount. The maturity date is April 3, 2015 and the interest rate from the date of borrowing is
12% per annum. The note and any accrued unpaid interest are convertible into common shares of the Company. The conversion price is
60% of the lowest trade price of the
20
trading days prior to the conversion. The Note has redemption premiums, if the Note is repaid prior to maturity, of
130% up until the 160th day and
150% thereafter up until maturity. The Company does not intend to repay the Note prior to maturity.
The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $73,357
and a debt discount was recorded. During the nine months ended September 30, 2015, the Company fully amortized the debt discount on the note as interest expense. The Company has repaid the loan through the conversion of $36,239
for
4,919,344
shares. The remaining $78,761
was paid through a cash payment of $130,629
with the remainder against accrued interest of $7,140
and $44,728
of interest expense from prepayment penalties.
On November 13, 2014, the Company entered into an agreement with an lender whereby the lender loaned a principal sum of $54,000. Upon signing, the Company received $50,000
in cash and paid fees of $4,000, recorded as a debt discount. The maturity date is August 17, 2015 and the interest rate from the date of borrowing is
8% per annum. If the note is unpaid by maturity the interest rate becomes
22% per annum thereafter. The note and any accrued unpaid interest are convertible into common shares of the Company
180
days after the issuance of this note. The conversion price is
61% of the lowest trade price of the
10
trading days prior to the conversion.
The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $65,717
of which $50,000
was recorded as debt discount, and $15,717
as additional interest expense. During the nine months ended September 30, 2015, the Company amortized all $54,000
of the debt discount as interest expense and recorded accrued interest of $2,160. The lender converted all $54,000
of debt and accrued interest of $2,160
for
15,775,222
shares.
On January 7, 2015, the Company entered into an agreement with an lender whereby the lender loaned a principal sum of $65,000. The Company received $50,000
in cash and paid fees of $15,000, recorded as a debt discount. The maturity date of the note is September 30, 2015 and the interest rate from the date of borrowing is
18% per annum. If the convertible note is unpaid by maturity the interest rate becomes
22% per annum thereafter. The convertible note and any accrued unpaid interest is convertible into common shares of the Company
180
days after the issuance of this note. The conversion price is
50% of the lowest closing bid price of the
20
trading days prior to the conversion. The convertible note has a redemption premiums if the convertible note is repaid prior to
180
days of
120% of the principal and accrued interest.
The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $111,083
of which $50,000
was recorded as debt discount, and $61,083
as additional interest expense. During the nine months ended September 30, 2015, the Company amortized all $65,000
of the debt discount as interest expense and the lender converted $8,750
of debt for
7,000,000
shares.
On January 13, 2015, the Company entered into an agreement with an lender whereby the lender loaned a principal sum of $52,500. Upon signing, the Company received $50,000
in cash and paid fees of $2,500, recorded as a debt discount. The maturity date of the convertible note is January 13, 2016 and the interest rate from the date of borrowing is
8% per annum. If the note is unpaid by maturity the interest rate becomes
24% per annum thereafter. The note and any accrued unpaid interest are convertible into common shares of the Company
180
days after the issuance of this Note. The conversion price is
60% of the lowest closing bid price of the
20
trading days prior to the conversion. The note has redemption premiums if the note is repaid prior to
180
days of
110% to
135% based on the number of days after the issuance that the note is repaid.
The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $109,533
of which $50,000
was recorded as debt discount, and $59,533
as additional interest expense. During the nine months ended September 30, 2015, the Company amortized $52,500
of debt discount as interest expense and recorded accrued interest of $2,302.The lender converted the $52,500
debt and $1,489
in accrued interest in exchange for
30,093,910
shares.
On January 16, 2015, the Company entered into an agreement with an lender whereby the lender lent a principal sum of $54,000. Upon signing, the Company received $50,000
in cash and paid fees of $4,000, recorded as a debt discount. The maturity date is October 20, 2015 and the interest rate from the date of borrowing is
8% per annum. If the note is unpaid by maturity the interest rate becomes
22% per annum thereafter. The note and any accrued unpaid interest is convertible into common shares of the Company
180
days after the issuance of this note. The conversion price is
61% of the lowest trade price of the
10
trading days prior to the conversion. The note has redemption premiums if the Note is repaid prior to
180
days of
135% of the outstanding principal and accrued interest balances.
The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $82,026
of which $50,000
being recorded as debt discount, and $32,026
as additional interest expense. During the nine months ended September 30, 2015, the Company amortized $54,000
of the debt discount as interest expense and recorded accrued interest of $2,349. The lender converted the $54,000
debt and $2,160
in accrued interest in exchange for
19,849,893
shares.
On January 21, 2015, the Company entered into an agreement with an lender whereby the lender loaned a principal sum of $35,000. Upon signing, the Company received $33,000
in cash and paid fees of $2,000, recorded as a debt discount. The maturity date is January 21, 2016 and the interest rate from the date of borrowing is
8% per annum. If the note is unpaid by maturity the interest rate becomes
22% per annum thereafter. The note and any accrued unpaid interest are convertible into common shares of the Company
180
days after the issuance of this note. The conversion price is
60% of the lowest closing bid price of the
20
trading days prior to the conversion. The note has redemption premiums if the note is repaid prior to
180
days of
135% of the outstanding principal and accrued interest balances.
The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $65,569
of which $33,000
was recorded as debt discount, and $32,569
as additional interest expense. During the nine months ended September 30, 2015, the Company amortized $13,014
of the debt discount as interest expense and recorded accrued interest of $1,713. The lender converted $16,150
of debt in exchange for
9,278,608
shares.
On January 28, 2015, the Company entered into an agreement with an lender whereby the lender agreed to lend a principal sum of up to $220,000. Upon closing, the Company received $35,000
in cash The Company paid an OID of $3,500
and an interest payable on issuance $3,850. The maturity date of the notes is January 28, 2016 and the interest rate from the date of borrowing is
10% per annum which was recorded at issuance. If the note is unpaid by maturity the interest rate becomes
20% per annum thereafter. The note and any accrued unpaid interest are convertible into common shares of the Company
180
days after the issuance of this note. The conversion price is
60% of the lowest trading price of the
25
trading days prior to the conversion. The note has redemption premiums if the note is repaid prior to
180
days of
135% of the outstanding principal and accrued interest balances.
The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $80,513
of which $35,000
being recorded as debt discount, and $45,513
as additional interest expense. During the nine months ended September 30, 2015, the Company amortized the $42,350
of the debt discount as interest expense. The lender converted the $42,350
of debt in exchange for
27,015,086
shares.
On February 5, 2015, the Company entered into an agreement with an lender whereby the lender agreed to lend a principal sum of up to $250,000
with OID of
12% of all amounts borrowed. Upon closing, the Company received $25,000
in cash and paid fees of $2,174, recorded as a debt discount. The maturity date is February 5, 2017. The note does not bear interest, however, if the note is unpaid by maturity the interest rate becomes
24% per annum thereafter. The note and any accrued unpaid interest are convertible into common shares of the Company
180
days after the issuance of this note. The conversion price is
60% of the lowest trading price of the
25
trading days prior to the conversion. The note has redemption premiums if the note is repaid prior to
180
days of
135% of the outstanding principal and accrued interest balances.
The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $50,952
of which $25,000
was recorded as debt discount, and $25,952
as additional interest expense. During the nine months ended September 30, 2015, the Company amortized $6,865
of the debt discount as interest expense and recorded accrued interest of $2,055. The lender converted $6,000
of debt in exchange for
5,000,000
shares.
On March 6, 2015, the Company entered into an agreement with an lender whereby the lender agreed to lend a principal sum of up to $100,000. Upon closing, the Company received $25,000
in cash and recorded an OID $2,778
as debt discount. The maturity date is March 6, 2017. The note has a one-time interest fee from the date of each borrowing of
12% per annum and was recorded at issuance as debt discount in the amount of $3,333. If the note is unpaid by maturity the interest rate becomes
24% per annum thereafter. The note and any accrued unpaid interest are convertible into common shares of the Company
180
days after the issuance of this note. The conversion price is
60% of the lowest closing bid price of the
20
trading days prior to the conversion. The Note has redemption premiums if the Note is repaid prior to
180
days of
135% of the outstanding principal and accrued interest balances.
The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $50,880
of which $25,000
was recorded as debt discount, and $25,880
as additional interest expense. During the nine months ended September 30, 2015, the Company amortized $7,316
of the debt discount as interest expense. The lender converted $5,400
of debt in exchange for
6,000,000
shares.
On March 26, 2015, the Company entered into an agreement with an lender whereby the lender loaned a principal sum of $22,500. Upon signing, the Company received $18,750
in cash and paid fees of $3,750, recorded as a debt discount. The maturity date is March 26, 2016 and the interest rate from the date of borrowing is
8% per annum. If the note is unpaid by maturity the interest rate becomes
24% per annum thereafter. The note and any accrued unpaid interest are convertible into common shares of the Company
180
days after the issuance of this Note. The conversion price is
60% of the lowest trading price of the
20
trading days prior to the conversion. The Note has redemption premiums if the note is repaid prior to
180
days of
135% of the outstanding principal and accrued interest balances.
The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $56,832
of which $18,750
was recorded as debt discount, and $39,882
as additional interest expense. During the nine months ended September 30, 2015, the Company amortized $11,557
of the debt discount as interest expense.
On March 9, 2015, the Company entered into an agreement with an lender whereby the lender loaned a principal sum of $33,000. Upon signing, the Company received $30,000
in cash and paid fees of $3,000, recorded as a debt discount. The maturity date is December 11, 2015 and the interest rate from the date of borrowing is
8% per annum. If the note is unpaid by maturity the interest rate becomes
22% per annum thereafter. The note and any accrued unpaid interest are convertible into common shares of the Company
180
days after the issuance of this Note. The conversion price is
61% of the average of the three lowest trading prices of the
10
trading days prior to the conversion.
The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $9,812
with a corresponding amount recorded as debt discount. During the nine months ended September 30, 2015, the Company amortized $6,650
of the debt discount as interest expense and recorded accrued interest of $1,586. The lender converted $24,150
of debt in exchange for
11,500,000
shares.
On March 31, 2015, the Company entered into an agreement with an lender whereby the lender loaned a principal sum of $40,000. Upon signing, the Company received $36,500
in cash and paid fees of $3,500, recorded as a debt discount. The maturity date is March 31, 2016 and the interest rate from the date of borrowing is
10% per annum. If the note is unpaid by maturity the interest rate becomes
24% per annum thereafter. The note and any accrued unpaid interest are convertible into common shares of the Company
180
days after the issuance of this Note. The conversion price is
60% of the lowest trading prices of the
40
trading days prior to the conversion.
The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $36,500
of which $34,762
was recorded as debt discount and $1,738
as additional interest expense. During the nine months ended September 30, 2015, the Company amortized $20,000
of the debt discount as interest expense and recorded accrued interest of $990.
On May 8, 2015, the Company entered into an agreement with an lender whereby the lender loaned a principal sum of $25,000. Upon signing, the Company received $17,000
in cash and paid fees of $8,000, recorded as a debt discount. The maturity date is May 8, 2016 and the interest rate from the date of borrowing is
8% per annum. If the note is unpaid by maturity the interest rate becomes
24% per annum thereafter. The note and any accrued unpaid interest are convertible into common shares of the Company
180
days after the issuance of this Note. The conversion price is
60% of the lowest trading prices of the
15
trading days prior to the conversion
The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $19,944
of which $17,000
was recorded as debt discount and $2,944
as additional interest expense. During the nine months ended September 30, 2015, the Company amortized $9,904
of the debt discount as interest expense and recorded accrued interest of $794.
On May 21, 2015, the Company entered into an agreement with an lender whereby the lender loaned a principal sum of $38,000. Upon signing, the Company received $35,000
in cash and paid fees of $3,000, recorded as a debt discount. The maturity date is February 26, 2016 and the interest rate from the date of borrowing is
8% per annum. If the note is unpaid by maturity the interest rate becomes
22% per annum thereafter. The note and any accrued unpaid interest are convertible into common shares of the Company
180
days after the issuance of this Note. The conversion price is
61% of the average of the three lowest trading prices of the
10
trading days prior to the conversion.
The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $25,808
with a corresponding amount recorded as debt discount. During the nine months ended September 30, 2015, the Company amortized $17,851
of the debt discount as interest expense and recorded accrued interest of $330.
On June 9, 2015, the Company entered into an agreement with an lender whereby the lender loaned a principal sum of $25,000. Upon signing, the Company received $19,700
in cash and paid fees of $5,300, recorded as a debt discount. The maturity date is June 9, 2016 and the interest rate from the date of borrowing is
8% per annum. If the note is unpaid by maturity the interest rate becomes
24% per annum thereafter. The note and any accrued unpaid interest are convertible into common shares of the Company at any time after the issuance of this Note. The conversion price is
60% of the lowest trading prices of the
20
trading days prior to the conversion.
The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $21,461
of which $21,461
was recorded as debt discount and $1,761
as additional interest expense. During the nine months ended September 30, 2015, the Company amortized $7,316
of the debt discount as interest expense and recorded accrued interest of $195.
On July 1, 2015 the Company entered into an agreement with an lender whereby the lender received this convertible debt in exchange for the assumption of promissory notes held by a related party for a principal sum of $12,000. On exchange, the Company recorded the $12,000
debt along with a loss on the settlement of the old debt of $13,409. The maturity date is July 1, 2016 and the interest rate from the date of borrowing is
10% per annum. The note and any accrued unpaid interest are convertible into common shares of the Company at any time after the issuance of this Note. The conversion price is
50% of the lowest trading prices of the
30
trading days prior to the conversion.
The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $13,409
with a $12,000
recorded as debt discount and $1,409
recorded as interest expense. During the nine months ended September 30, 2015, the Company amortized $12,000
of the debt discount as interest expense. The lender converted all $12,000
of debt in exchange for
8,275,862
shares.
On July 15, 2015 the Company entered into an agreement with an lender whereby the lender received this convertible debt in exchange for the assumption of promissory notes held by a related party for a principal sum of $20,000. On exchange, the Company recorded the $20,000
debt along with a loss on the settlement of the old debt of $22,694. The maturity date is July 15, 2016 and the interest rate from the date of borrowing is
10% per annum. The note and any accrued unpaid interest are convertible into common shares of the Company at any time after the issuance of this Note. The conversion price is
50% of the lowest trading prices of the
30
trading days prior to the conversion.
The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $22,694
with a $20,000
recorded as debt discount and $2,694
recorded as interest expense. During the nine months ended September 30, 2015, the Company amortized $20,000
of the debt discount as interest expense. The lender converted all $20,000
of debt in exchange for
18,544,444
shares.
On July 16, 2015, the Company entered into an agreement with an lender whereby the lender loaned a principal sum of $52,500. Upon signing, the Company received $50,000
in cash and paid fees of $2,500, recorded as a debt discount. The maturity date is July 16, 2016 and the interest rate from the date of borrowing is
8% per annum. If the note is unpaid by maturity the interest rate becomes
24% per annum thereafter. The note and any accrued unpaid interest are convertible into common shares of the Company at any time after the issuance of this Note. The conversion price is
60% of the lowest trading prices of the
20
trading days prior to the conversion.
The Company determined that the conversion option was a derivative. Accordingly, the Company recorded a derivative liability of $48,775
of which $51,275
was recorded as debt discount. During the nine months ended September 30, 2015, the Company amortized $10,647
of the debt discount as interest expense and recorded accrued interest of $875. |
