Convertible Notes Payable | Note 4. Convertible Notes Payable During the nine months ended December 31, 2015, Vista View Ventures, Inc. (“Vista View”) advanced $423,909 to the Company for working capital. Vista View paid the advances to KMDA, and subsequently KMDA paid them to the Company on behalf of Vista View. These advances are typically memorialized into a convertible note payable on a quarterly basis as discussed below. Convertible notes payable consist of the following as of December 31, 2015 and March 31, 2015: December 31, 2015 March 31, 2015 Convertible note dated June 30, 2014, bearing interest at 10% per annum, maturing June 30, 2016 and convertible into shares of common stock at $0.02 per share 2,322 62,980 Convertible note dated September 30, 2014, bearing interest at 10% per annum, maturing September 30, 2016 and convertible into shares of common stock at $0.01 per share 80,133 80,133 Convertible note dated December 31, 2014, bearing interest at 10% per annum, maturing December 31, 2016 and convertible into shares of common stock at $0.01 per share 94,074 94,074 Convertible note dated December 31, 2014, bearing interest at 10% per annum, maturing December 31, 2016 and convertible into shares of common stock at $0.02 per share. — 125,059 Convertible note dated March 31, 2015, bearing interest at 10% per annum, maturing March 31, 2017 and convertible into shares of common stock at $0.007 per share 39,635 39,635 Convertible note dated June 30, 2015, bearing interest at 10% per annum, maturing June 30, 2017 and convertible into shares of common stock at $0.25 per share. 54,006 — Convertible note dated September 30, 2015, bearing interest at 10% per annum, maturing September 30, 2018, and convertible into shares of common stock at $0.25 per share. 267,558 — Convertible note dated December 31, 2015, bearing interest at 10% per annum, maturing December 31, 2018 and convertible into shares of common stock at $0.09 per share 102,345 — Total convertible notes payable $ 640,073 $ 401,881 Less: current portion of convertible notes payable (176,529 ) — Less: discount on convertible notes payable (449,371 ) (237,643 ) Convertible notes payable, net of discount $ 14,173 $ 164,238 Current portion of convertible notes payable 176,529 — Less: discount on current portion of convertible notes payable (116,664 ) — Current portion of convertible notes payable, net of discount $ 59,865 $ — Convertible notes issued During the nine months ended December 31, 2015, the Company signed Convertible Promissory Notes totaling $423,909 with Vista View Ventures, Inc. that memorialize non-interest bearing periodic advances into convertible notes payable. The Convertible Promissory Notes bear interest at 10% per annum and are payable along with accrued interest at maturity. The Convertible Promissory Note and unpaid accrued interest are convertible into common stock at the option of the holder. The holder of the notes may not convert the convertible promissory note into common stock if that conversion would result in the holder owning more than 4.99% of the Company’s outstanding common stock on the conversion date. Date Issued Maturity Date Interest Rate Conversion Rate Note Amount June 30, 2015 June 30, 2017 10% $ 0.25 $ 54,006 September 30, 2015 September 30, 2018 10% 0.25 267,558 December 31, 2015 December 31, 2018 10% 0.09 102,345 Total $ 423,909 The Company evaluated the terms of the notes in accordance with ASC Topic No. 815 – 40, Derivatives and Hedging - Contracts in Entity’s Own Stock Conversions to Common Stock During the nine months ended December 31, 2015, Essen Enterprises, Inc. (“Essen”), the original payee of the Convertible Note Payable dated December 31, 2014 elected to convert principal and accrued interest in the amounts show below into share of common stock at a rate of $0.02 per share. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement that provided for conversion. Date Amount Converted Shares of Common Stock Issued June 1, 2015 $ 130,267 6,513,344 Total $ 130,267 6,513,344 As a result of this conversion, Essen became a significant shareholder of the Company. During the nine months ended December 31, 2015, the holders of the Convertible Note Payable dated June 30, 2014 elected to convert principal and accrued interest in the amounts show below into share of common stock at a rate of $0.02 per share. On the conversion date, the unamortized discount related to the principal amount converted was immediately amortized to interest expense. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement that provided for conversion. Date Amount Converted Shares of Common Stock Issued June 5, 2015 $ 13,600 680,000 July 8, 2015 1,400 70,000 July 16, 2015 7,520 376,000 July 22, 2015 3,220 161,000 July 23, 2015 995 49,750 July 24, 2015 4,920 246,000 August 3, 2015 2,200 110,000 August 11, 2015 3,860 193,000 August 18, 2015 2,040 102,000 August 26, 2015 4,280 214,000 September 11, 2015 5,560 278,000 September 24, 2015 4,000 200,000 September 29, 2015 7,449 372,450 October 1, 2015 5,940 297,000 October 8, 2015 789 39,450 Total $ 67,773 3,388,650 During the nine months ended December 31, 2015, the holders of the Convertible Note Payable dated September 30, 2014 elected to convert principal and accrued interest in the amounts show below into share of common stock at a rate of $0.01 per share. On the conversion date, the unamortized discount related to the principal amount converted was immediately amortized to interest expense. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement that provided for conversion. Date Amount Converted Shares of Common Stock Issued December 22, 2015 $ 1,920 192,000 Total $ 1,920 192,000 In connection with the 1 for 100 reverse common stock split on May 29, 2015, the conversion rates of the outstanding convertible notes payable were not modified. As a result, in the event all potentially issuable shares were converted, the holders of the existing notes at December 31, 2015 would be issued 27,841,559 shares of common stock representing approximately 99% of the Company’s total shares outstanding on an if-converted basis. The holders of the notes are limited to holding no greater than 4.99% of the common stock at any time. | Note 5. Convertible Notes Payable Convertible notes payable consist of the following as of March 31, 2015 and March 31, 2014: March 31, 2015 March 31, 2014 Convertible note payable, dated June 30, 2013, bearing interest at 10% per annum, matures on June 30, 2015 and convertible into shares of common stock at $0.04 per share $ — $ 4,742 Convertible note payable, dated September 30, 2013, bearing interest at 10% per annum, matures on September 30, 2015 and convertible into shares of common stock at $0.04 per share — 224,085 Convertible note payable, dated June 30, 2014, bearing interest at 10% per annum, matures on June 30, 2016 and convertible into shares of common stock at $0.02 per share 62,980 — Convertible note payable, dated September 30, 2014, bearing interest at 10% per annum, matures on September 30, 2016 and convertible into shares of common stock at $0.01 per share 80,133 — Convertible note payable, dated December 31, 2014, bearing interest at 10% per annum, matures on December 31, 2016 and convertible into shares of common stock at $0.01 per share 94,074 — Convertible note payable, dated December 31, 2014, bearing interest at 10% per annum, matures on December 31, 2016 and convertible into shares of common stock at $0.02 per share 125,059 — Convertible note payable, dated March 31, 2015, bearing interest at 10% per annum, matures on March 31, 2017 and convertible into shares of common stock at $0.007 per share 39,635 — Total convertible notes payable $ 401,881 $ 228,827 Less: discount on convertible notes payable (237,643 ) (215,716 ) Convertible notes payable, net of discount $ 164,238 $ 13,111 Convertible notes issued During the year ended March 31, 2015, the Company entered into convertible promissory notes with Vista View Ventures, Inc., which refinanced non-interest bearing advances. The convertible notes have the following terms: Date Issued Maturity Date Interest Conversion Amount of April 1, 2014 March 31, 2016 10 % $ 0.03 $ 149,453 June 30, 2014 June 30, 2016 10 % $ 0.02 62,980 September 30, 2014 September 30, 2016 10 % $ 0.01 80,133 December 31, 2014 December 31, 2016 10 % $ 0.01 94,074 December 31, 2014 December 31, 2016 10 % $ 0.02 125,059 March 31, 2015 March 31, 2017 10 % $ 0.007 39,635 Total $ 551,334 All principal along with accrued interest is payable on the maturity date. The Company evaluated the terms of the notes in accordance with ASC Topic No. 815 – 40, Derivatives and Hedging - Contracts in Entity’s Own Stock Conversions to common stock During the year ended March 31, 2015, the holder of the convertible note payable dated June 30, 2013 elected to convert principal and accrued interest in the amounts shown below into shares of common stock at a rate of $0.04 per share. On the conversion date, the unamortized discount related to the principal amount was immediately amortized to interest expense. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement. Date Amount Converted Shares of Common Stock Issued August 20, 2014 $ 4,954 1,239 Total $ 4,954 1,239 During the year ended March 31, 2015, the holder of the convertible note payable dated September 30, 2013 elected to convert principal and accrued interest in the amounts shown below into shares of common stock at a rate of $0.04 per share. On the conversion date, the unamortized discount related to the principal amount was immediately amortized to interest expense. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement. Date Amount Converted Shares of Common Stock Issued April 21, 2014 $ 80,000 20,000 May 14, 2014 40,000 10,000 May 23, 2014 40,000 10,000 June 14, 2014 40,000 10,000 June 18, 2014 38,368 9,592 Total $ 238,368 59,592 During the year ended March 31, 2015, the holder of the Convertible Note Payable dated April 1, 2014 elected to convert principal and accrued interest in the amounts shown below into shares of common stock at a rate of $0.03 per share. On the conversion date, the unamortized discount related to the principal amount was immediately amortized to interest expense. No gain or loss was recognized on the conversions as they occurred within the terms of the agreement. Date Amount Converted Shares of Common Stock Issued October 8, 2014 $ 42,000 14,000 October 9, 2014 42,000 14,000 October 22, 2014 42,000 14,000 January 15, 2015 32,260 10,754 Total $ 158,260 52,754 In connection with the 1 for 100 reverse common stock split on May 29, 2015, the conversion rates of the outstanding convertible notes payable were not modified. As a result, in the event all potentially issuable shares were converted, the holders of the existing notes at March 31, 2015 would be issued 27,458,608 shares of common stock representing approximately 99% of the Company’s total shares outstanding on an if-converted basis. The holders of the notes are limited to holding no greater than 4.99% of the common stock at any time. |