6% Convertible Notes | 3 Months Ended |
Mar. 31, 2015 |
Loan Payable - Stockholder and 6% Convertible Notes [Abstract] | |
6% CONVERTIBLE NOTES | Note 4. 6% CONVERTIBLE NOTES |
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In March 2011, the Company issued $800 aggregate principal amount of 6% convertible notes due in January 2012. Interest on the notes accrue at the rate of 6% per annum and are payable when the notes mature. The notes matured prior to conversion but have not been repaid. Interest continues to accrue at the rate of 6% per annum. |
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The holder of one of the notes converted $110 of note principal into 1,100,000 shares of common stock as follows: |
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Date of Conversion | | Principal Amount Converted | | | Conversion Rate | | | Shares Received | |
Jun-13 | | $ | 70 | | | $ | 0.0001 | | | | 700,000 | |
Aug-13 | | $ | 40 | | | $ | 0.0001 | | | | 400,000 | |
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In August 2013, in a private transaction, the same note holder transferred $330 of the remaining note principal plus $55 in accrued interest to a third party. |
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In August 2013, in a private transaction, the new note holder transferred $5 of the remaining note principal to a third party who then converted the note into 50,000 shares of common stock. |
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In September 2013, the new note holder converted $100 of note principal into 1,000,000 shares of common stock. |
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In September 2013, in a private transaction, the new note holder transferred $35 of the remaining note principal to a third party who then converted the note into 350,000 shares of common stock. |
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In November and December 2013, the new note holder converted an additional $90 of note principal into 900,000 shares of common stock as follows: |
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Date of Conversion | | Principal Amount Converted | | | Conversion Rate | | | Shares Received | |
Nov-13 | | $ | 40 | | | $ | 0.0001 | | | | 400,000 | |
Dec-13 | | $ | 50 | | | $ | 0.0001 | | | | 500,000 | |
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In March and April 2014, the new note holder converted an additional $90 of note principal into 900,000 shares of common stock as follows: |
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Date of Conversion | | Principal Amount Converted | | | Conversion Rate | | | Shares Received | |
Mar-14 | | $ | 50 | | | $ | 0.0001 | | | | 400,000 | |
Apr-14 | | $ | 40 | | | $ | 0.0001 | | | | 500,000 | |
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Subsequent to these conversions there remains $125 in note principal. |
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In July 2013, the holder of the second note converted $240 of note principal into 400,000 shares of the Company's common stock at $0.0006 per share. At March 31, 2015, the note had a remaining principal balance of $60. |
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At any time on or after the maturity date, the holders of the notes, have the option of converting any of the unpaid principal and interest into the Company's common stock. The notes plus any accrued but unpaid interest are convertible at the rate of $0.0001 per share at the time of conversion up to a maximum of 9.99% of the then issued and outstanding common stock, or, 2,440,732 shares at March 31, 2015. |
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In May 2012, the Company issued a $25,000, 6% per annum note that matured in November 2012. In December 2012 the note was amended to be a convertible note. Interest on the note accrues at 6% and is payable when the note matures. |
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The holder of the $25,000 note had the option of converting it at any time prior to maturity. The note plus any accrued but unpaid interest were convertible at the rate of $0.001 per share at the time of conversion up to a maximum of 9.99% of the then issued and outstanding common stock. The holder of the note converted $1,010 of note principal into 1,010,000 shares of common stock as follows: |
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Date of Conversion | | Principal Amount Converted | | | Conversion Rate | | | Shares Received | |
Dec-12 | | $ | 150 | | | $ | 0.001 | | | $ | 150,000 | |
Jan-13 | | $ | 660 | | | $ | 0.001 | | | $ | 660,000 | |
March 2013 | | $ | 200 | | | $ | 0.001 | | | $ | 200,000 | |
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In July 2013, the Company retired $14,000 of note principal in payment for consulting services provided to the note holder. |
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In July 2013, in a private transaction, the note holder transferred the remaining note principal balance of $9,900 to a third party. |
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In July 2013, the note holder converted $300 of note principal into 300,000 shares of the Company's common stock. The remaining principal on this portion of the note at March 31, 2014 is $4,815. The note holder has the option of converting the balance at any time with the approval of the Board of Directors. The note plus any accrued but unpaid interest are convertible at the rate of $0.001 per share at the time of conversion up to a maximum of 9.99% of the then issued and outstanding common stock, or 2,440,732 shares at March 31, 2015. |
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In August 2013, in a private transaction, the new note holder transferred $4,475 of principal to a stockholder of the company. |
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In September 2013, the note holder converted $400 of note principal into 400,000 shares of the Company's common stock at $0.001 per share. |
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In August 2013, the note holder/stockholder converted $700 of note principal into 700,000 shares of the Company's common stock at $0.001 per share. In October 2013, in a private transaction, this note holder transferred $1,000 of note principal to a third party of which $700 was converted into 700,000 shares in June 2014. The remaining principal balance on this portion of the note at March 31, 2015 is $2,075. The note holder has the option of converting the balance at any time with the approval of the Board of Directors. The note plus any accrued but unpaid interest are convertible at the rate of $0.001 per share at the time of conversion up to a maximum of 9.99% of the then issued and outstanding common stock, or 2,440,732 shares at March 31, 2015. |