4. NOTES PAYABLE | During 2011, the Company entered into a note payable for $15,000. The Note has an interest rate of 2% monthly, is unsecured, and due on demand. As of March 31, 2015 and December 31, 2014, the total amount outstanding is $13,000. Accrued interest totaled $11,620 and $10,840 as of March 31, 2015 and December 31, 2014, respectively. On February 4, 2014, the Company received $35,000 in exchange for accounts receivable of $47,915. The amount is repayable on a daily basis whereby the Company pays $300 per day. As of October 23, 2014, the Note was fully repaid. In January, 2014, the Company entered into two notes payable for a total of $20,000. The Notes have an interest rate of 15% per year, are unsecured, have maturity dates that have been extended to May 31, 2015 and are in default. In February, 2014, the Company entered into a note payable for $10,000. The Note has an interest rate of 15% per year, is unsecured, the maturity date has been extended to May 31, 2015 and is in default. In March, 2014, the Company entered into a note payable for $60,000. The Note has a lump sum interest payment due of $4,000, is unsecured, the maturity date has been extended to May 31, 2015 and is in default. On March 26, 2014, the Company entered into a note payable for $100,000. The Note had an interest rate of 10%, increasing to 20% beginning January 1, 2015, with a late payment premium of 22% on the principal and interest. A lump sum of $10,000 is due upon repayment, and is unsecured. In the second quarter of 2014, the Company accreted $ 10,000 of the original issuance discount. As of March 31, 2015 and December 31, 2014, the total amount outstanding is $67,671. Accrued interest totaled $7,292 and $0 as of March 31, 2015 and December 31, 2014, respectively. The Note was in default as of March 31, 2015. On May 15, 2014, the Company entered into a note payable for $100,000. The Note has an interest rate of 10% with a lump sum of $20,000 due upon repayment, and is unsecured. In the second and third quarters of 2014, the Company accreted $ 20,000 of the original issuance discount. As of March 31, 2015 and December 31, 2014, the total amount outstanding is $96,302. Accrued interest totaled $2,408 and $0 as of March 31, 2015 and December 31, 2014, respectively. The Note was in default as of March 31, 2015. On June 4, 2014, the Company entered into a note payable for $20,000. The Note has a lump sum interest payment due of $3,000, is unsecured, and was fully repaid as of July 22, 2014. On July 17, 2014, the Company entered into a $75,000 Note with an interest rate of 15%. The Note was in default as of March 31, 2015. On October 21, 2014, the Company entered into two notes payable for a total of $20,000. The Notes have lump sum interest payments due totaling $6,667, and are unsecured. The maturity dates have been extended to August 31, 2015. On December 4, 2014, the Company entered into a note payable for $5,000. The Note has a lump sum interest payment due of $2,000, is unsecured, the maturity date has been extended to May 31, 2015 and is in default. In Summary, during the first three months ended March 31, 2015 and for the year ended December 31, 2014, the Company received $0 and $996,973 of notes payable, respectively, including convertible notes payable, with maturity terms ranging from one month to two years and interest rates from 8% to 15%. The Notes contain various conversion rates and prepayment penalties. For the three months ended March 31, 2015 and the year ended December 31, 2014, the Company has repaid $0 and $430,778 of principal, respectively, and all of the notes have been retired. |