| NOTE 4. NOTES PAYABLE |
| |
|
December
31,
2013
|
|
|
(Unaudited)
June
30,
2014
|
|
| Note payable to related party, unsecured, due
8/3/2012, interest rate 0% |
|
$ |
1,950 |
|
|
$ |
1,950 |
|
| |
|
|
|
|
|
|
|
|
| Notes payable to related parties, unsecured, due 12/31/2012, interest
rate 0% |
|
$ |
11,810 |
|
|
$ |
11,810 |
|
| |
|
|
|
|
|
|
|
|
| Note payable to non-related party, unsecured, due 2/8/12, quarterly
interest due, convertible at holders option at $0.3235688 per TBT - DE share, interest rate 30% |
|
$ |
10,000 |
|
|
$ |
10,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable to non-related party, unsecured, due 2/8/12, quarterly
interest due, convertible at holders option at $0.3235688 per TBT - DE share, interest rate 30% |
|
$ |
25,000 |
|
|
$ |
25,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable to non-related party, unsecured, due 2/17/12, quarterly
interest due, convertible at holders option at $0.3235688 per TBT - DE share, interest rate 30% |
|
$ |
25,000 |
|
|
$ |
25,000 |
|
| Note payable to non-related party, unsecured, due 2/18/12, quarterly
interest due, convertible at holders option at $0.3235688 per TBT - DE share, interest rate 30% |
|
$ |
10,000 |
|
|
$ |
10,000 |
|
| Note payable to non-related party, unsecured, due 2/18/13, annual
interest due, convertible at holders option at $0.3235688 per TBT-DE share, interest rate 18% |
|
$ |
750 |
|
|
$ |
750 |
|
| Note payable to non-related party, unsecured, due 2/18/13, annual
interest due, convertible at holders option at $0.3235688 per TBT-DE share, interest rate 18% |
|
$ |
6,875 |
|
|
$ |
6,875 |
|
| Note payable to non-related party, unsecured, due 2/15/13, annual
interest due, convertible at holders option at $0.3235688 per TBT-DE share, interest rate 12% |
|
$ |
2,500 |
|
|
$ |
2,500 |
|
| Note payable to non-related party, unsecured, due 2/20/13, annual
interest due, convertible at holders option at $0.3235688 per TBT-DE share, interest rate 12% |
|
$ |
3,750 |
|
|
$ |
3,750 |
|
| Note payable to non-related party, unsecured, due 2/21/13, annual
interest due, convertible at holders option at $0.3235688 per TBT-DE share, interest rate 12% |
|
$ |
2,625 |
|
|
$ |
2,625 |
|
| Note payable to non-related party, unsecured, due 3/20/13, annual
interest due, convertible at holders option at $0.3235688 per TBT-DE share, interest rate 12% |
|
$ |
5,433 |
|
|
$ |
5,433 |
|
| Note payable to non-related party, unsecured, due 3/22/13, annual
interest due, convertible at holders option at $0.3235688 per TBT-DE share, interest rate 12% |
|
$ |
3,203 |
|
|
$ |
3,203 |
|
| Note payable to non-related party, unsecured, due 1/05/13, annual
interest due, convertible at holders option at 51% of market as defined, interest rate 8%, conversion limited to total
beneficial ownership of 4.99% |
|
|
- |
|
|
|
- |
|
| Note payable to non-related party, unsecured, due 2/25/13, annual
interest due, convertible at holders option at 51% of market as defined, interest rate 8%, conversion limited to total
beneficial ownership of 4.99% |
|
$ |
19,250 |
|
|
|
- |
|
| Note payable to related party, unsecured, $731,763, 5-years at
0% simple interest, due 7/1/2016, payment amounts vary each month, various late penalties. |
|
$ |
726,763 |
|
|
$ |
726,763 |
|
| Note payable to non-related party, unsecured, due 4/19/13, annual
interest due, convertible at holders option at 51% of market as defined, interest rate 8%, conversion limited to total
beneficial ownership of 4.99% |
|
$ |
52,500 |
|
|
$ |
52,500 |
|
| Note payable to non-related party, unsecured, due 08/29/2013, simple
interest 8% convertible at holders option at $.249 per TBT-CA share. |
|
$ |
15,000 |
|
|
$ |
15,000 |
|
| Note payable to non-related party, unsecured, due 03/01/2013, simple
interest 9%. |
|
$ |
5,000 |
|
|
$ |
5,000 |
|
| Note payable to non-related party, unsecured, due 12/13/2013, simple
interest 7%. |
|
$ |
5,342 |
|
|
$ |
5,342 |
|
| Note payable to non-related party, unsecured, due 01/31/2013, simple
interest 18%. |
|
$ |
3,938 |
|
|
$ |
3,938 |
|
| Note payable to non-related party, unsecured, due on demand, simple
interest 7%, convertible at anytime into common stock at 65% of market closing price on previous day |
|
$ |
25,000 |
|
|
|
- |
|
| Note payable to non-related party, unsecured, due 01/07/2014, simple
interest 7%, default interest 10%, stock option |
|
$ |
15,000 |
|
|
$ |
15,000 |
|
| Note payable to non-related party, unsecured, due 01/15/2014, simple
interest 7%, default interest 10%, stock option |
|
$ |
5,000 |
|
|
$ |
5,000 |
|
| Note payable to non-related party, unsecured,
due 01/20/2014, simple interest 7%, default interest 10%, stock option |
|
$ |
65,272 |
|
|
$ |
65,272 |
|
| Note payable to non-related party, unsecured, due 03/28/2013, $13,000
in interest (1 month) |
|
$ |
32,000 |
|
|
$ |
17,000 |
|
| Note payable to non-related party, unsecured, due 01/23/2014, simple
interest 9%, |
|
$ |
50,000 |
|
|
$ |
50,000 |
|
| Note payable to non-related party, unsecured, due 04/28/2014, simple
interest 7%, default interest 10%, stock option |
|
$ |
9,440 |
|
|
$ |
9,440 |
|
| Note payable to non-related party, unsecured, due 05/05/2014, simple
interest 7%, default interest 10%, stock option |
|
$ |
50,060 |
|
|
$ |
50,060 |
|
| Note payable to non-related party, unsecured, due 07/02/2014, simple
interest 9% |
|
$ |
15,000 |
|
|
$ |
15,000 |
|
| Note payable to non-related party, unsecured, due 10/25/2013, simple
interest 18%, |
|
$ |
2,000 |
|
|
$ |
2,000 |
|
| Note payable to non-related party, unsecured,
due 07/29/2014, simple interest 7%, default interest 10%, stock option |
|
$ |
1,900 |
|
|
$ |
1,900 |
|
| Note payable to non-related party, unsecured, due 09/19/2014, simple
interest 7%, default interest 10%, stock option |
|
$ |
10,000 |
|
|
$ |
10,000 |
|
| Note payable to non-related party, unsecured, due 09/19/2014, simple
interest 7%, default interest 10%, stock option |
|
$ |
65,000 |
|
|
$ |
65,000 |
|
| Note payable to non-related party, unsecured, due 09/29/2014, simple
interest 7%, default interest 10%, stock option |
|
$ |
20,000 |
|
|
$ |
20,000 |
|
| Note payable to non-related party, unsecured, due 12/27/2013, simple
interest 9%, |
|
$ |
15,000 |
|
|
$ |
15,000 |
|
| Note payable to non-related party, unsecured, due 10/28/2014, simple
interest 7%, default interest 10%, stock option |
|
$ |
2,500 |
|
|
$ |
2,500 |
|
| Note payable to non-related party, unsecured, due 10/29/2014, simple
interest 7%, default interest 10%, stock option |
|
$ |
10,000 |
|
|
$ |
10,000 |
|
| Note payable to non-related party, unsecured, due 11/10/2014, simple
interest 7%, default interest 10%, stock option |
|
$ |
5,000 |
|
|
$ |
5,000 |
|
| Note payable to non-related party, unsecured, due 11/12/2014, interest
up to 9%, convertible up to the due date |
|
$ |
11,000 |
|
|
$ |
11,000 |
|
| Note payable to non-related party, unsecured, due 11/20/2014, simple
interest 7%, default interest 10%, stock option |
|
$ |
20,000 |
|
|
$ |
20,000 |
|
| Note payable to non-related party, unsecured, due 12/02/2014, simple
interest 7%, default interest 10%, stock option |
|
$ |
5,000 |
|
|
$ |
5,000 |
|
| Note payable to non-related party, unsecured, due 1/27/2014, simple
interest 10%. |
|
$ |
5,000 |
|
|
$ |
4,735 |
|
| Note payable to non-related party, unsecured, due 1/07/2015, simple
interest 7%, default interest 10%, stock option |
|
|
- |
|
|
$ |
25,000 |
|
| Note payable to non-related party, unsecured, due 1/28/2015, simple
interest 7%, default interest 10%, stock option |
|
|
- |
|
|
$ |
1,253 |
|
| Note payable to non-related party, unsecured, due 1/29/2015, simple
interest 7%, default interest 10%, stock option |
|
|
- |
|
|
$ |
3,500 |
|
| Note payable to non-related party, unsecured, due 2/10/2015, simple
interest 7%, default interest 10%, stock option |
|
|
- |
|
|
$ |
990 |
|
| Note payable to non-related party, unsecured, due 2/17/2015, simple
interest 7%, default interest 10%, stock option |
|
|
- |
|
|
$ |
4,500 |
|
| Note payable to non-related party, unsecured, due 2/20/2015, simple
interest 7%, default interest 10%, stock option |
|
|
- |
|
|
$ |
5,000 |
|
| Note payable to non-related party, unsecured, due 3/10/2015, simple
interest 7%, default interest 10%, stock option |
|
|
- |
|
|
$ |
2,500 |
|
| Note payable to non-related party, unsecured, due 3/31/2015, simple
interest 7%, default interest 10%, stock option |
|
|
- |
|
|
$ |
2,500 |
|
| Note payable to non-related party, unsecured, due 4/03/2015, simple
interest 7%, default interest 10%, stock option |
|
|
- |
|
|
$ |
5,890 |
|
| Note payable to non-related party, unsecured, due 4/08/2015, interest
up to 7%, convertible up to the due date |
|
|
- |
|
|
$ |
15,000 |
|
| Note payable to non-related party, unsecured, due 4/10/2015, simple
interest 7%, default interest 10%, stock option |
|
|
- |
|
|
$ |
4,331 |
|
| Note payable to non-related party, unsecured, due 4/27/2015, simple
interest 7%, default interest 10%, stock option |
|
|
- |
|
|
$ |
2,500 |
|
| Note payable to non-related party, unsecured, due 5/13/2015, simple
interest 7%, default interest 10%, stock option |
|
|
- |
|
|
$ |
5,360 |
|
| Note payable to non-related party, unsecured, due 9/11/2014, simple
interest 10%. |
|
|
- |
|
|
$ |
5,000 |
|
| Note payable to non-related party, unsecured, due 5/26/2015, simple
interest 7%, default interest 10%, stock option |
|
|
- |
|
|
$ |
895 |
|
| Note payable to non-related party, unsecured, due 6/10/2015, simple
interest 7%, default interest 10%, stock option |
|
|
- |
|
|
$ |
3,207 |
|
| Note payable to non-related party, unsecured, due 6/17/2015, simple
interest 7%, default interest 10%, stock option |
|
|
- |
|
|
$ |
600 |
|
| |
|
$ |
1,375,861 |
|
|
$ |
1,404,372 |
|
| Less note discounts |
|
|
(22,996 |
) |
|
|
(18,331 |
) |
| Less current portion |
|
|
(1,185,858 |
) |
|
|
(1,219,034 |
) |
| Long-term portion |
|
$ |
167,007 |
|
|
$ |
167,007 |
|
Required
principal payments from June 30, 2014 forward are as follows:
| 2014 |
|
$ |
1,237,365 |
|
| 2015 |
|
$ |
123,709 |
|
| 2016 |
|
$ |
43,298 |
|
| 2017 |
|
$ |
- |
|
| 2018 |
|
$ |
- |
|
| |
|
$ |
1,404,372 |
|
Interest
expense under notes payable for the six months ended June 30, 2014 and June 30, 2013 was $87,665 and $66,057, respectively.
During
the six months ended June 30, 2014 and June 30, 2013 the Company recognized a beneficial conversion feature expense on borrowing
from convertible notes of $19,665 and $133,492 respectively. During the six months ended June 30, 2014 and June 30, 2013 the unamortized
note discount from the beneficial conversion feature was $18,331 and $31,665, respectively.
In
2012 the company borrowed $110,000 under convertible notes with a variable conversion price based on a percentage of market price.
Notes converted at December 31, 2013 and June 30, 2014 were $47,500 and $75,000, respectively. The Company determined that these
notes have an embedded derivative and are therefore accounted for at fair value. The Company recorded fair market value adjustments
for the six months ended June 30, 2014 and June 30, 2013 of $8,260 and $389,297, respectively. The fair market value adjustments
were based on the Black-Sholes method using the following assumptions: risk free rate of 0.08%, dividend yield of 0%, expected
life of 1 year, volatility of 172% - 197%. The fair value derivative liability under the notes as of June 30, 2014 and December
31, 2013 was $121,757 and $150,067 respectively.
|