3. CONVERTIBLE DEBENTURES | On November 18, 2014 the Company entered into a 12% Secured Convertible Debenture with a related party. The debenture carries a one month term. The debenture was issued in the amount of $50,000. Upon maturity of the Note, the Company issued a promissory note in the amount of $55,000 to cover the balance of the note and included an Original Issue Discount (OID) of $5,000. The conversion feature of the note did not change. The new note has a term of one year. This note was paid off on September 17, 2015 with funds received from a new note. See below for additional information. September 30, 2015 December 31, 2014 Convertible debenture $ 20,000 $ 55,000 Original issue discount (4,411 ) Less: Payment (22,244 ) (35,000 ) Accumulated interest 2,244 819 Convertible debenture, net of OID $ $ 16,408 On November 21, 2014 the Company entered into a 10% Secured Convertible Debenture. The debenture carries a fifteen month term. The debenture was issued in the amount of $225,000. The company has receive one tranche from this convertible note in the amount of $60,000, which included $5,000 in fees and an OID of $5,000. The debenture has a conversion feature at a share price of 70% of the average of the three lowest closing prices in a 20 day period prior to the conversion. The debenture has a true up feature in the note which permits the note holder to acquire additional shares after a conversion, in the event the proceeds from the sale of the shares is not equal to or greater than the value of the shares on the date of conversion. During the nine months ended September 30, 2015 the company expensed $38,559 as interest expense in relation to true up valuation. As of September 30, 2015, the Company has converted $79,548 of the convertible note with 5,692,687 shares of common stock. September 30, 2015 December 31, 2014 Convertible debenture $ 60,000 $ 60,000 Conversion of debt to common stock (79,548 ) Discount Warrant (17,364 ) Discount (16,221 ) Original issue discount (4,520 ) Accumulated interest 43,268 575 Convertible debenture, net of OID $ 23,720 $ 22,470 On December 2, 2014 the Company entered into a 7% Secured Convertible Debenture. The debenture carries a three year term. The debenture was issued in the amount of $200,000. As of December 31, 2014 the Company has received $100,000. As of September 30, 2015, the Company has received $200,000 in total. September 30, 2015 December 31,2014 Convertible debenture $ 100,000 $ 100,000 Additional amount received 100,000 Discount (119,857 ) Accumulated interest 11,104 556 Convertible debenture, net of OID and discount $ 91,247 $ 100,556 On February 9, 2015, the Company executed a $59,000 Secured Convertible Promissory Note. The note has an 8% interest rate and a term of 9 months. During the nine months ended September 30, 2015, the company converted $12,904 of the convertible debt for 3,108,168 shares of common stock. There was additional interest as a default on the note in the amount of $29,500 September 30, 2015 Convertible debenture $ 59,000 Discount (214 ) Conversion of debt to common stock (12,904 ) Accumulated interest 32,936 Convertible debenture net of discount $ 78,818 On March 9, 2015, the Company executed a $50,000 12% Secured Convertible Promissory Note. The note has a 12% interest rate and a term of 6 months. September 30, 2015 Convertible debenture $ 50,000 Accumulated interest 3,437 Convertible debenture $ 53,437 On March 25, 2015, the Company executed and sold a $250,000 Secured Convertible Promissory Note. The note has a 12% interest rate and for a term of 1 year. The company received $25,000 which includes an original issue discount of $2,778, upon closing of the transaction. During the nine months ended September 30, 2015, the company converted $2,220 of the convertible debt for 1,000,000 shares of common stock. September 30, 2015 Convertible debenture $ 27,778 issue discount (1,363 ) Conversion of debt to common stock (2,220 ) Discount (19,662 ) Accumulated interest 1,012 Convertible debenture, net of OID and discount $ 5,545 On May 20, 2015, the Company executed a $31,500 8% Secured Convertible Promissory Note. The note has an 8% interest rate and a term of 1 year. September 30, 2015 Convertible debenture $ 31,500 Discount (24,469 ) Accumulated interest 924 Convertible debenture, net of discount $ 7,955 On May 21, 2015, the Company executed a $55,000 10% Secured Convertible Promissory Note. The note has a 10% interest rate and a term of nine months. September 30, 2015 Convertible debenture $ 55,000 Discount (26,087 ) Accumulated interest 2,004 Convertible debenture, net of discount $ 30,917 On May 25, 2015, the Company executed a $55,000 10% Secured Convertible Promissory Note. The note has a 10% interest rate and a term of one year. The note has a 10% Original Issue Discount totaling $5,000. September 30, 2015 Convertible debenture $ 55,000 Issue Discount (4,521 ) Discount (32,055 ) Accumulated interest 1,539 Convertible debenture, net of discount $ 19,963 On June 3, 2015, the Company executed a $43,500 8% Secured Convertible Promissory Note. The note has an 8% interest rate and a term of 1 year. September 30, 2015 Convertible debenture $ 43,500 Discount (14,985 ) Accumulated interest 1,140 Convertible debenture, net of discount $ 29,655 On August 3, 2015 the Company executed an $809,235 10% Secured Convertible Debenture in exchange for 145,000 shares of Preferred Stock. The note has a 10% interest rate and a term of one year. September 30, 2015 Convertible debenture $ 809,205 Discount (696,138 ) Accumulated interest 11,307 Convertible debenture, net of discount $ 124,374 On August 10, 2015, the Company entered into a 10% Convertible Debenture. The note has a 10% interest rate and a term of one year. Additionally the company entered into two additional notes in September with the same party and under the same terms as the note on August 10, 2015. Funds from the third payment in the amount of $12,244 was used to satisfy the note on November 18, 2014. September 30, 2015 Convertible debenture $ 150,000 Discount (137,539 ) Accumulated interest 1,247 Convertible debenture, net of discount $ 13,708 |