| NOTE 4. NOTES PAYABLE |
| |
|
December
31, 2014 |
|
|
December
31, 2013 |
|
| Note payable to
related party, unsecured, due 8/3/2012, interest rate 0%. |
|
$ |
1,950 |
|
|
$ |
1,950 |
|
| |
|
|
|
|
|
|
|
|
| Notes payable
to related party, unsecured, due 12/31/2012, interest rate 0%. |
|
$ |
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. |
|
$ |
726,763 |
|
|
$ |
726,763 |
|
| |
|
|
|
|
|
|
|
|
| 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 2/18/13, 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. |
|
$ |
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 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%. (Fully converted at December 31, 2014). |
|
$ |
- |
|
|
$ |
19,250 |
|
| |
|
|
|
|
|
|
|
|
| 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%. 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 companys
stock. |
|
$ |
6,605 |
|
|
$ |
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 |
|
| |
|
|
|
|
|
|
|
|
| Currently in default. |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-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%. 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. |
|
$ |
5,342 |
|
|
$ |
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 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%, 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.
|
|
$ |
15,000 |
|
|
$ |
15,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 01/15/2014, 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. |
|
$ |
5,000 |
|
|
$ |
5,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 01/20/2014, 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. |
|
$ |
65,272 |
|
|
$ |
65,272 |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 03/28/2013, $13,000 in interest (1 month). Currently in default. Principal balance including
interest to be paid upon the receipt of equity funding and/or sales revenue. |
|
$ |
17,000 |
|
|
$ |
32,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 01/23/2014, simple interest 9%. Currently in default. Principal balance including interest
to be paid upon the receipt of equity funding and/or sales revenue. |
|
$ |
50,000 |
|
|
$ |
50,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 04/28/2014, 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. |
|
$ |
9,440 |
|
|
$ |
9,440 |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 05/05/2014, 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. |
|
$ |
50,060 |
|
|
$ |
50,060 |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 07/02/2014, simple interest 9%. 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 10/25/2013, simple interest 18%. Currently in default. Principal balance including interest
to be paid upon the receipt of equity funding and/or sales revenue. |
|
$ |
2,000 |
|
|
$ |
2,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 07/29/2014, simple interest 7%, default interest 10%, Currently in default. Principal balance
including interestto 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. |
|
$ |
1,900 |
|
|
$ |
1,900 |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 09/19/2014, 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 09/19/2014, 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. |
|
$ |
65,000 |
|
|
$ |
65,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 09/29/2014, simple interest 7%, default interest 10%, stock option. 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. |
|
$ |
20,000 |
|
|
$ |
20,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 12/27/2013, simple interest 9%. 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 10/28/2014, 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. |
|
$ |
2,500 |
|
|
$ |
2,500 |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 10/29/2014, simple interest 7%, default interest 10%, Principal balance including interest
to be paid upon the receipt of equity funding and/or sales revenu. 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 11/10/2014, 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. |
|
$ |
5,000 |
|
|
$ |
5,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 11/20/2014, 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. |
|
$ |
20,000 |
|
|
$ |
20,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 12/02/2014, 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. |
|
$ |
5,000 |
|
|
$ |
5,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 1/27/2014, simple interest 10%. Currently in default. Principal balance including interest
to be paid upon the receipt of equity funding and/or sales revenue. |
|
$ |
4,235 |
|
|
$ |
5,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 1/07/2015, simple interest 7%, default interest 10%, 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. |
|
$ |
25,000 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 1/28/2015, simple interest 7%, default interest 10%, 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. |
|
$ |
1,253 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 1/29/2015, simple interest 7%, default interest 10%. 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. |
|
$ |
3,500 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 2/10/2015, simple interest 7%, default interest 10%, 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. |
|
$ |
990 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 2/17/2015, simple interest 7%, default interest 10%, 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. |
|
$ |
4,500 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 2/20/2015, simple interest 7%, default interest 10%, 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 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 3/10/2015, simple interest 7%, default interest 10%, 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. |
|
$ |
2,500 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 3/31/2015, simple interest 7%, default interest 10%, 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. |
|
$ |
2,500 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 4/03/2015, simple interest 7%, default interest 10%, 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. |
|
$ |
5,890 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| 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%, 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. |
|
$ |
4,331 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 4/27/2015, simple interest 7%, default interest 10%, 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. |
|
$ |
2,500 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 5/13/2015, simple interest 7%, default interest 10%, 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. |
|
$ |
5,360 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| 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. |
|
$ |
5,000 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 5/26/2015, simple interest 7%, default interest 10%, 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. |
|
$ |
895 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 6/10/2015, simple interest 7%, default interest 10%, 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. |
|
$ |
3,207 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 6/17/2015, simple interest 7%, default interest 10%, 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. |
|
$ |
600 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 7/09/2015, simple interest 7%, default interest 10%, 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. |
|
$ |
3,750 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 8/05/2015, simple interest 7%, default interest 10%, 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 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 9/03/2015, simple interest 7%, default interest 10%, 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. |
|
$ |
1,000 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 10/19/2015, simple interest 7%, default interest 10%, 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. |
|
$ |
1,486 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 10/22/2015, simple interest 7%, default interest 10%, 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. |
|
$ |
3,500 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 10/28/2015, simple interest 7%, default interest 10%, 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. |
|
$ |
4,360 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 11/11/2015, simple interest 7%, default interest 10%, 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. |
|
$ |
5,810 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 11/19/2015, simple interest 7%, default interest 10%, 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. |
|
$ |
15,000 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| Note payable to
non-related party, unsecured, due 12/02/2015, simple interest 7%, default interest 10%. |
|
$ |
214,334 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
| |
|
$ |
1,617,217 |
|
|
$ |
1,375,861 |
|
| |
|
|
|
|
|
|
| Less note discounts |
|
|
(5,000 |
) |
|
|
(22,996 |
) |
| |
|
|
|
|
|
|
|
|
| Less current -
related parties |
|
|
(697,225 |
) |
|
|
(573,516 |
) |
| |
|
|
|
|
|
|
|
|
| Less current
non-related parties |
|
|
(871,694 |
) |
|
|
(612,342 |
) |
| |
|
|
|
|
|
|
|
|
| Long-term
related parties |
|
$ |
43,298 |
|
|
$ |
167,007 |
|
Required
principal payments from December 31, 2014 forward are as follows:
| 2015 |
|
|
$ |
1,573,919 |
|
| 2016 |
|
|
$ |
43,298 |
|
| 2017 |
|
|
$ |
- |
|
| 2018 |
|
|
$ |
- |
|
| 2019 |
|
|
$ |
- |
|
| |
|
|
$
|
1,617,217
|
|
Interest
expense under notes payable for the years ended December 31, 2013 and December 31, 2014 was $170,428 and $188,046, respectively.
During
the years ended December 31, 2013 and December 31, 2014 the Company recognized a beneficial conversion feature expense on borrowing
from convertible notes of $94,161and $32,996 respectively. During the years ended December 31, 2013 and December 31, 2014 the
unamortized note discount from the beneficial conversion feature was $22,996 and $5,000, 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 December 31, 2014 were $47,500 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 December 31, 2013 and December 31, 2014 of $11,969 and $21,559, 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, 2013 and December 31, 2014 was $150,067 and $25,456 respectively.
|