| NOTE 4. NOTES PAYABLE |
| |
|
December
31,
2015
|
|
|
(Unaudited)
September
30,
2016
|
|
| 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. Currently in default. |
|
$ |
180,001 |
|
|
$ |
180,001 |
|
| |
|
|
|
|
|
|
|
|
| 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%. 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 holders 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 holders 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 holders 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 holders 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 2/8/13, annual interest due, convertible at holders 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 holders 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 holders 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 holders 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 holders 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 holders 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 08/29/2013, simple interest 8% convertible at holders option at $.249 per
TBT-CA share. Currently in default. Principal balance including interest to be paid upon receipt of equity funding and/or
sales revenue. |
|
$ |
15,000 |
|
|
$ |
15,000 |
|
| |
|
|
|
|
|
|
|
|
| Note
payable to related party, unsecured, due 03/01/2013, simple interest 9%. Currently in default. Principal balance including
interest to be paid upon receipt of equity funding and/or sales revenue. |
|
$ |
5,000 |
|
|
$ |
5,000 |
|
| |
|
|
|
|
|
|
|
|
| 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 related party, unsecured, due 01/23/2014, simple interest 9%. Currently in default. |
|
$ |
50,000 |
|
|
$ |
50,000 |
|
| |
|
|
|
|
|
|
|
|
| Note
payable to related party, unsecured, due 07/02/2014, simple interest 9%. Currently in default. |
|
$ |
15,000 |
|
|
$ |
15,000 |
|
| |
|
|
|
|
|
|
|
|
| Note
payable to non-related party, unsecured, due 10/25/2013, simple interest 18%. Currently in default. |
|
$ |
2,000 |
|
|
$ |
2,000 |
|
| |
|
|
|
|
|
|
|
|
| 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 9/11/2014, simple interest 10% yearly, 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 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 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 related party, unsecured, due 8/05/2015, simple interest 7%, default interest 10%. Currently in default. Note contains
a stock option. |
|
$ |
10,000 |
|
|
$ |
10,000 |
|
| |
|
|
|
|
|
|
|
|
| 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 |
|
|
$ |
106,334 |
|
| |
|
|
|
|
|
|
|
|
| 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 |
|
|
$ |
25,000 |
|
| |
|
|
|
|
|
|
|
|
| Note
payable to related party, unsecured, due 4/11/2016, simple interest 10%. Principal balance including interest to be paid upon
the receipt of equity funding and/or sales revenue. Currently in default. |
|
$ |
13,000 |
|
|
$ |
13,000 |
|
| |
|
|
|
|
|
|
|
|
| Note
payable to related party, unsecured, due 11/11/2015, simple interest 10%. Principal balance including interest to be paid
upon the receipt of equity funding and/or sales revenue. Currently in default. |
|
$ |
45,000 |
|
|
$ |
45,000 |
|
| |
|
|
|
|
|
|
|
|
| Note
payable to non-related party, unsecured, due 11/11/2015, simple interest 10%. Principal balance including interest to be paid
upon the receipt of equity funding and/or sales revenue. Currently in default. |
|
$ |
2,500 |
|
|
$ |
2,500 |
|
| |
|
|
|
|
|
|
|
|
| Note
payable to related party, unsecured, due 12/26/2015, simple interest 10%. Principal balance including interest to be paid
upon the receipt of equity funding and/or sales revenue. Currently in default. |
|
$ |
25,000 |
|
|
$ |
25,000 |
|
| |
|
|
|
|
|
|
|
|
| Note
payable to related party, unsecured, due on demand, simple interest 10%. |
|
$ |
- |
|
|
$ |
15,277 |
|
| |
|
|
|
|
|
|
|
|
| Note
payable to related party, unsecured, due 7/23/2016, simple interest 10%. Currently in default. |
|
$ |
- |
|
|
$ |
15,000 |
|
| |
|
|
|
|
|
|
|
|
| Note
payable to related party, unsecured, due 5/1/2017, simple interest 7%. Note contains a stock option. |
|
$ |
- |
|
|
$ |
3,750 |
|
| |
|
|
|
|
|
|
|
|
| Note
payable to related party, unsecured, due 11/9/2016, simple interest 7%. Note contains a stock option. |
|
$ |
- |
|
|
$ |
15,000 |
|
| |
|
|
|
|
|
|
|
|
| Note
payable to related party, unsecured, due 7/26/2017, simple interest 7%. Note contains a stock option. |
|
$ |
- |
|
|
$ |
3,900 |
|
| |
|
|
|
|
|
|
|
|
| Note
payable to related party, unsecured, due 8/03/2017, simple interest 7%. Note contains a stock option. |
|
$ |
- |
|
|
$ |
20,000 |
|
| |
|
|
|
|
|
|
|
|
| Note
payable to related party, unsecured, due 9/28/2017, simple interest 7%. Note contains a stock option. |
|
$ |
- |
|
|
$ |
20,000 |
|
| |
|
$ |
652,669 |
|
|
$ |
745,596 |
|
| Less
note discounts |
|
|
(6,250 |
) |
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| Less
current - related parties |
|
|
(489,095 |
) |
|
|
(582,022 |
) |
| |
|
|
|
|
|
|
|
|
| Less
current non-related parties |
|
|
(157,324 |
) |
|
|
(163,574 |
) |
| |
|
|
|
|
|
|
|
|
| Long-term
related parties |
|
$ |
- |
|
|
$ |
- |
|
Required
principal payments from September 30, 2016 forward are as follows:
| 2016 |
|
$ |
697,946 |
|
| 2017 |
|
$ |
47,650 |
|
| 2018 |
|
$ |
- |
|
| 2019 |
|
$ |
- |
|
| 2020 |
|
$ |
- |
|
| |
|
$ |
745,596 |
|
Interest
expense under notes payable for the nine months ended September 30, 2016 and September 30, 2015 was $89,276 and $142,721 respectively.
During
the nine months ended September 30, 2016 and September 30, 2015 the Company recognized a beneficial conversion feature expense
on borrowing from convertible notes of $6,250 and $17,500, respectively.
During
the nine months ended September 30, 2016 and September 30, 2015 the unamortized note discount from the beneficial conversion feature
was none, and $12,500, respectively.
In
2012 the company borrowed $110,000 under convertible notes with a variable conversion price based on a percentage of market price
of which $103,395 were converted at December 31, 2014. The Company paid the remaining principal balance due on these convertible
notes in January 2015. 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 nine months ended September 30, 2016 and September 30,
2015 of none 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 September 30, 2016 and December 31, 2015 was none and none,
respectively.
|