| NOTE 4. NOTES PAYABLE |
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December 31, 2011 |
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December 31, 2012 |
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| Note payable to related party, unsecured, due 8/3/2012, interest rate 0% |
|
$ |
1,950 |
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|
$ |
1,950 |
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| |
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|
|
|
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|
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| Notes payable to related parties, unsecured, due 12/31/2012, interest rate 0% |
|
$ |
11,810 |
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|
$ |
11,810 |
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| |
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|
|
|
|
|
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| Note payable to non-related party, unsecured, due 09/15/2012, convertible at holders option at $2.50 per TBT - CA share. |
|
$ |
16,000 |
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|
|
- |
|
| |
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| 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 |
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|
$ |
10,000 |
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| |
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|
|
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| 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% |
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|
$ |
25,000 |
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| |
|
|
|
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|
|
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| 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 |
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| |
|
|
|
|
|
|
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| 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 |
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|
$ |
10,000 |
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| |
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| 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% |
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|
- |
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|
$ |
750 |
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| |
|
|
|
|
|
|
|
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| 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% |
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|
- |
|
|
$ |
6,875 |
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| |
|
|
|
|
|
|
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| 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% |
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|
- |
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|
$ |
2,500 |
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| |
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| 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 |
|
| |
|
|
|
|
|
|
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| 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% |
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|
- |
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|
$ |
2,625 |
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| |
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| 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% |
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|
- |
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|
$ |
5,433 |
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| |
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| 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% |
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|
- |
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|
$ |
3,203 |
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| 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% |
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|
- |
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|
$ |
10,500 |
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| |
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| 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% |
|
|
- |
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|
$ |
37,500 |
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| |
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|
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| 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 |
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|
$ |
726,763 |
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| |
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| 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% |
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|
- |
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|
$ |
35,000 |
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| |
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| Note payable to non-related party, unsecured, due 08/29/2013, simple interest 8% convertible at holders option at $.249 per TBT-CA share. |
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|
- |
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|
$ |
15,000 |
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| Note payable to non-related party, unsecured, due 03/01/2013, simple interest 9%. |
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|
- |
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|
$ |
5,000 |
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| Note payable to non-related party, unsecured, due 01/31/2013, $12,000 in interest (2 months) |
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|
- |
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|
$ |
32,000 |
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| Note payable to non-related party, unsecured, due 12/13/2013, simple interest 7%. |
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|
- |
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|
$ |
5,342 |
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| Note payable to non-related party, unsecured, due 01/31/2013, simple interest 18%. |
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|
- |
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|
$ |
3,938 |
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| |
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|
$ |
826,523 |
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|
$ |
979,939 |
|
| Less current portion |
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|
(277,260 |
) |
|
|
(616,051 |
) |
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|
|
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| Long-term portion |
|
$ |
549,263 |
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|
$ |
363,888 |
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Required principal payments from December 31,
2012 forward are as follows:
| 2013 |
|
$ |
616,051 |
|
| 2014 |
|
$ |
196,881 |
|
| 2015 |
|
$ |
123,709 |
|
| 2016 |
|
$ |
43,298 |
|
| 2017 |
|
$ |
- |
|
| |
|
$ |
979,939 |
|
Interest expense under notes payable for the
year ended December 31, 2011 and December 31, 2012 was $474,455 and $118,194, respectively.
During the year ended December 31, 2011 and
December 31, 2012 the Company recognized a beneficial conversion feature expense on borrowing from convertible notes of $70,000
and $112,064, respectively. At December 31, 2012 the unamortized note discount from the beneficial conversion feature was $38,072.
In 2012 the Company borrowed $110,000 under convertible notes with
a variable conversion price based on a percentage of market price. $27,000 of the notes were converted in 2012. The Company determined
that these notes have an embedded derivative and are therefore accounted for at fair value. The Company recorded an expense of
$448,137 in 2012 for fair value adjustments based on the Black-Scholes method using the following assumptions: risk free interest
rate of 0.08%, dividend yield of 0%, expected life of 2-4 months, volatility of 172% - 197%. The fair value equity obligation liability
under the notes at December 31, 2012 was $463,037.
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|
2011 |
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|
2012 |
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| Convertible debenture payable to unrelated party, |
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| unsecured, due 04/1/2009, |
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| convertible at holders option at $.25 per share, |
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| interest rate 8% Default interest rate 12% |
|
$ |
30,000 |
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|
$ |
- |
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|