Annual report pursuant to Section 13 and 15(d)

NOTE 4. NOTES PAYABLE

v3.3.1.900
NOTE 4. NOTES PAYABLE
 12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
NOTE 4. NOTES PAYABLE
    December 31,
2015		    

December 31,

2014

  
Note payable to related party, unsecured, due 8/3/2012, interest rate 0%. Currently in default.   $ 1,950     $ 1,950  
                 
Notes payable to related party, unsecured, due 12/31/2012, interest rate 0%. Currently in default.   $ 11,810     $ 11,810  
                 
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.   $ 180,001     $ 726,763  
                 
Note payable to non-related party, unsecured, due 2/8/12, quarterly interest due, convertible at holder's option at $0.3235688 per TBT - DE share, interest rate 30%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue.   $ 10,000     $ 10,000  
                 
Note payable to non-related party, unsecured, due 2/8/12, quarterly interest due, convertible at holder's option at $0.3235688 per TBT - DE share, interest rate 30%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue.   $ 25,000     $ 25,000  
                 
Note payable to non-related party, unsecured, due 2/17/12, quarterly interest due, convertible at holder's option at $0.3235688 per TBT - DE share, interest rate 30%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue.   $ 25,000     $ 25,000  
                 
Note payable to non-related party, unsecured, due 2/18/12, quarterly interest due, convertible at holder's option at $0.3235688 per TBT - DE share, interest rate 30%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue.   $ 10,000     $ 10,000  
                 
Note payable to non-related party, unsecured, due 2/18/13, annual interest due, convertible at holder's option at $0.3235688 per TBT-DE share, interest rate 18%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue.   $ 750     $ 750  
                 
Note payable to non-related party, unsecured, due 2/18/13, annual interest due, convertible at holder's option at $0.3235688 per TBT-DE share, interest rate 18%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue.   $ 6,875     $ 6,875  
                 
Note payable to non-related party, unsecured, due 2/15/13, annual interest due, convertible at holder's option at $0.3235688 per TBT-DE share, interest rate 12%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue.   $ 2,500     $ 2,500  
                 
Note payable to non-related party, unsecured, due 2/20/13, annual interest due, convertible at holder's option at $0.3235688 per TBT-DE share, interest rate 12%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue.   $ 3,750     $ 3,750  
                 
Note payable to non-related party, unsecured, due 2/21/13, annual interest due, convertible at holder's option at $0.3235688 per TBT-DE. share, interest rate 12%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue.   $ 2,625     $ 2,625  
                 
Note payable to non-related party, unsecured, due 3/20/13, annual interest due, convertible at holder's option at $0.3235688 per TBT-DE share, interest rate 12%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue.   $ 5,433     $ 5,433  
                 
Note payable to non-related party, unsecured, due 3/22/13, annual interest due, convertible at holder's option at $0.3235688 per TBT-DE share, interest rate 12%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue.   $ 3,203     $ 3,203  
                 
Note payable to non-related party, unsecured, due 4/19/13, annual interest due, convertible at holder's option at 51% of market as defined, interest rate 8%, conversion limited to total beneficial ownership of 4.99%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue and/or the continued conversion of the company's stock.   $ -     $ 6,605  
                 
Note payable to non-related party, unsecured, due 08/29/2013, simple interest 8% convertible at holder's option at $.249 per TBT-CA share.   $ 15,000     $ 15,000  
                 
Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue.                
                 
Note payable to related party, unsecured, due 03/01/2013, simple interest 9%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue.   $ 5,000     $ 5,000  
                 
Note payable to non-related party, unsecured, due 12/13/2013, simple interest 7%. Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 5,342  
                 
Note payable to non-related party, unsecured, due 01/31/2013, simple interest 18%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue.   $ 3,938     $ 3,938  
                 
Note payable to non-related party, unsecured, due 01/07/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 15,000  
                 
Note payable to non-related party, unsecured, due 01/15/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 5,000  
                 
Note payable to non-related party, unsecured, due 01/20/2014, simple interest 7%, default interest 10%,   $ -     $ 65,272  
                 
Stock option issued as an additional transaction cost for receipt of funds from note payable.                
                 
Note payable to related party, unsecured, due 01/23/2014, simple interest 9%. Currently in default.   $ 50,000     $ 50,000  
                 
Note payable to non-related party, unsecured, due 03/28/2013, $13,000 in interest (1 month).   $ -     $ 17,000  
                 
Note payable to non-related party, unsecured, due 04/28/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 9,440  
                 
Note payable to non-related party, unsecured, due 05/05/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 50,060  
                 
Note payable to related party, unsecured, due 07/02/2014, simple interest 9%.   $ 15,000     $ 15,000  
                 
Note payable to non-related party, unsecured, due 09/19/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 10,000  
                 
Note payable to non-related party, unsecured, due 07/29/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 1,900  
                 
Note payable to non-related party, unsecured, due 07/25/2013, simple interest 18%. Currently in default.   $ 2,000     $ 2,000  
                 
Note payable to non-related party, unsecured, due 09/19/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 65,000  
                 
Note payable to non-related party, unsecured, due 12/27/2013, simple interest 9% quarterly, Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue.   $ 15,000     $ 15,000  
                 
Note payable to non-related party, unsecured, due 09/29/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 20,000  
                 
Note payable to non-related party, unsecured, due 10/28/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 2,500  
                 
Note payable to non-related party, unsecured, due 10/29/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 10,000  
                 
Note payable to non-related party, unsecured, due 11/10/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 5,000  
                 
Note payable to related party, unsecured, due 11/12/2014, simple interest 9%, Convertible at $0.04 per share, currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue.   $ 11,000     $ 11,000  
                 
Note payable to non-related party, unsecured, due 11/20/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 20,000  
                 
Note payable to non-related party, unsecured, due 12/02/2014, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 5,000  
                 
Note payable to non-related party, unsecured, due 1/27/2014, simple interest 10%,   $ -     $ 4,235  
                 
Note payable to non-related party, unsecured, due 1/07/2015, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 25,000  
                 
Note payable to non-related party, unsecured, due 1/28/2015, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 1,253  
                 
Note payable to non-related party, unsecured, due 1/29/2015, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 3,500  
                 
Note payable to non-related party, unsecured, due 2/10/2015, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 990  
                 
Note payable to non-related party, unsecured, due 2/17/2015, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 4,500  
                 
Note payable to non-related party, unsecured, due 2/20/2015, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 5,000  
                 
Note payable to non-related party, unsecured, due 3/10/2015, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 2,500  
                 
Note payable to non-related party, unsecured, due 3/31/2015, simple interest 7%, default interest 10%, Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 2,500  
                 
Note payable to non-related party, unsecured, due 4/03/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 5,890  
                 
Note payable to related party, unsecured, due 4/08/2015, simple interest 7%, Convertible at $0.0072 per share. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue.   $ 15,000     $ 15,000  
                 
Note payable to non-related party, unsecured, due 4/10/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 4,331  
                 
Note payable to non-related party, unsecured, due 4/27/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 2,500  
                 
Note payable to non-related party, unsecured, due 5/13/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 5,360  
                 
Note payable to non-related party, unsecured, due 5/26/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 895  
                 
Note payable to non-related party, unsecured, due 9/11/2014, simple interest 10%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ 5,000     $ 5,000  
                 
Note payable to non-related party, unsecured, due 6/10/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 3,207  
                 
Note payable to non-related party, unsecured, due 6/17/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 600  
                 
Note payable to related party, unsecured, due 8/05/2015, simple interest 7%, default interest 10%. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ 10,000     $ 10,000  
                 
Note payable to non-related party, unsecured, due 7/09/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 3,750  
                 
Note payable to non-related party, unsecured, due 9/03/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 1,000  
                 
Note payable to non-related party, unsecured, due 10/19/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 1,486  

 

Note payable to non-related party, unsecured, due 10/22/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 3,500  
                 
Note payable to non-related party, unsecured, due 10/28/2015, simple interest 7%, default interest 10%.  Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 4,360  
                 
Note payable to non-related party, unsecured, due 11/11/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 5,810  
                 
Note payable to non-related party, unsecured, due 11/19/2015, simple interest 7%, default interest 10%. Stock option issued as an additional transaction cost for receipt of funds from note payable.   $ -     $ 15,000  
                 
Note payable to related party unsecured, due 12/02/2015, simple interest 7%, default interest 10%. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. Currently in default.   $ 106,334     $ 214,334  
                 
Note payable to non-related party, unsecured, due 3/26/2016, simple interest 8%, convertible at $0.0017 per share. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. Currently in default.   $ 25,000     $ -  
                 
Note payable to related party, unsecured, due 4/11/2016, simple interest 10%.   $ 13,000     $ -  
                 
Note payable to related party, unsecured, due 11/11/2015, simple interest 10%. Currently in default.

   $ 45,000     $ -  
                 
Note payable to non-related party, unsecured, due 11/11/2015, simple interest 10%. Currently in default.   $ 2,500     $ -  
                 
Note payable to related party, unsecured, due 12/26/2015, simple interest 10%. Currently in default.   $ 25,000     $ -  
                 
    $ 652,669     $ 1,617,217  
                 
Less note discounts      (6,250 )       (5,000 )
                 
Less current - related parties      (489,095 )        (697,225 )
                 
Less current – non-related parties      (157,324 )        (871,694 )
                 
Long-term – related parties   $   -     $   43.298  

 

Required principal payments from December 31, 2015 forward are as follows:

 

2016   $ 652,669  
2017   $ -  
2018   $ -  
2019   $ -  
2020   $ -  
    $ 652,669  

 

Interest expense under notes payable for the years ended December 31, 2014 and December 31, 2015 was $188,046 and $198,327, respectively.

 

During the years ended December 31, 2014 and December 31, 2015 the Company recognized a beneficial conversion feature expense on borrowing from convertible notes of $32,996 and $23,750, respectively.

 

During the years ended December 31, 2014 and December 31, 2015 the unamortized note discount from the beneficial conversion feature was $5,000 and $6,250, 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, 2014 and December 31, 2015 were $103,395 and $103,395, 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 years ended ended December 31, 2014 and December 31, 2015 of $21,559 and $(25,456), respectively. The fair market value adjustments were based on the Black-Sholes method using the following assumptions: risk free rates ranging between 0.10% - 0.21%, dividend yield of 0%, expected life of 1 year, volatility between 128% - 354%. The fair value derivative liability under the notes as of December 31, 2014 and December 31, 2015 was $25,456 and none, respectively.