Note 4 - Notes payable | 9 Months Ended |
Sep. 30, 2013 |
Notes to Financial Statements | ' |
Note 4 - Notes payable | ' |
Note 4 - Notes payable |
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In 2012, IPR initiated a private placement for up to $1,000,000 of financing by the issuance of notes payable at a minimum of $25,000. The notes bear interest at 12% per annum and are due and payable with accrued interest one year from issuance. Also, IPR agreed to issue 102,850 shares of its common stock for every $25,000 invested. |
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Under the private placement, the Company has issued a total of two notes for an aggregate principal amount of $175,000. In addition IPR issued 719,950 share of its common stock at a fair value of $3,917 as determined using a valuation performed by a third party valuation firm. In October 2012, the two note holders agreed to extend the maturity date of the notes for a period of one year. The Company paid an extension of 175,000 shares of the Company’s common stock at a fair value of $175 as determined by a valuation performed by a third party valuation firm. As of September 30, 2013, the balance outstanding on these notes is $175,000. |
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In October and November 2012, the Company issued two (2) promissory notes in the amounts of $25,000 and $25,000, respectively. In addition the Company issued 250,000 share of its common stock at a fair value of $250 as determined by a valuation performed by a third party valuation firm. As of September 30, 2013, the balances of these notes were $25,000 and $25,000, respectively. |
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These notes payable, which aggregate $225,000 as of September 30, 2013, mature as follows: $150,000 in September 2013, $50,000 in October 2013 and $25,000 in January 2013. The note which matured in January 2013 remains outstanding as of September 30, 2013. |
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In November 2012, the Company purchased a vehicle for $64,458. The purchase was financed through a note payable for $64,458 at interest of 2.99% per annum with sixty payments of $1,060 per month. As of September 30, 2013 the balance of the note was $60,840. |
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On January 14, 2013, the Company issued a promissory note for an aggregate principal amount of $25,000. In addition, the Company issued 125,000 shares of its common stock in connection with the issuance of the note as loan fees. These shares were valued at their issuance date fair market value and $25,000 was recorded as a note discount with the excess $12,500 recognized as a charge to interest expense upon issuance. The note carries an interest rate of 10% per annum and a maturity date of April 14, 2013 with interest due monthly in arrears. As of September 30, 2013, the outstanding balance on the note was $25,000 and no interest has been paid to date. |
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On January 14, 2013, the Company issued a promissory note for an aggregate principal amount of $25,000. In addition, the Company issued 125,000 shares of its common stock in connection with the issuance of the note as loan fees. These shares were valued at their issuance date fair market value and $25,000 was recorded as a note discount with the excess $12,500 recognized as a charge to interest expense upon issuance. The note carries an interest rate of 10% per annum and a maturity date of July 1, 2013 with interest due monthly in arrears. As of September 30, 2013, the balance of the note was $25,000 and no interest has been paid to date. |
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On January 31, 2013, the Company issued a promissory note for an aggregate principal amount of $100,000. In addition, the Company issued 500,000 shares of its common stock in connection with the issuance of the note as loan fees. These shares were valued at their issuance date fair market value of $75,000, which was recorded as a note discount. The note carries an interest rate of 10% per annum and a maturity date of January 30, 2014 with interest due monthly in arrears. As of September 30, 2013 the outstanding balance of the note was $100,000 and no interest has been paid to date. |
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In connection with acquisition of Aviva Companies Corporation on April 2, 2013, the Company assumed a note payable for an aggregate principal amount of $25,000 and accrued interest of $1,042 as of April 2, 2013. The note accrues interest of 10% per annum and matured on May 1, 2013 however remains outstanding as of September 30, 2013 accruing interest. As of September 30, 2013 the outstanding balance of the note was $25,000. |
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In connection with acquisition of Aviva Companies Corporation on April 2, 2013, the Company acquired a note payable for an aggregate principal amount of $50,000 and accrued interest of $20,233 as of April 2, 2013. The note accrued interest of 10% per annum and matured on May 1, 2013, however remains outstanding as of September 30, 2013 accruing interest. As of September 30, 2013 the outstanding balance on the note was $50,000. |
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On August 30, 2013, the Company issued a promissory note for an aggregate principal amount of $25,000. In addition, the Company issued 125,000 shares of its common stock in connection with the issuance of the note as loan fees. These shares were valued at their issuance date fair market value of $125, which was recorded as a note discount. The note carries an interest rate of 10% per annum, however, during the continuance of any event of default, the Interest rate shall be increased to fourteen (14%) percent per annum. The interest shall be payable in arrears on the maturity date.. The maturity date of the note is the earlier of July 1, 2014 or the closing of a “Qualified Financing”, an equity financing for gross proceeds of not less than $5,000,000. As of September 30, 2013 the outstanding balance of the note was $25,000. |
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On September 25, 2013, the Company issued a promissory note for an aggregate principal amount of $10,000. In addition, the Company issued 50,000 shares of its common stock in connection with the issuance of the note as loan fees. These shares were valued at their issuance date fair market value of $50, which was recorded as a note discount. The note carries an interest rate of 10% per annum, however, during the continuance of any event of default, the Interest rate shall be increased to fourteen (14%) percent per annum. The interest shall be payable in arrears on the maturity date.. The maturity date of the note is the earlier of July 1, 2014 or the closing of a “Qualified Financing”, an equity financing for gross proceeds of not less than $5,000,000. As of September 30, 2013 the outstanding balance of the note was $10,000. |
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Promissory Note - Related Party |
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On May 10, 2013, the Company issued a promissory note to an affiliate for an aggregate principal amount of $25,000. In addition, the Company issued 125,000 shares of its common stock in connection with the issuance of the note as loan fees. The Note carries an interest rate of 8% per annum and a maturity date of October 10, 2013 with interest due in arrears. A note discount of $125 was recorded on date of issuance. As of September 30, 2013 the outstanding balance on the note was $16,988. |
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Amortization of note discounts amounted to $103,566 during the period ended September 30, 2013. As of September 30, 2013, there was $24,491 of note discount unamortized. |
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As of September 30, 2013, future minimum payments due fiscal years due on notes payable are as follows: |
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Fiscal Year | |
2014 | $524,000 |
2015 | 12,000 |
2016 | 12,000 |
2016 | 12,000 |
2018 | 158,000 |
| $718,000 |
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