Quarterly report pursuant to Section 13 or 15(d)

NOTE 4. NOTES PAYABLE

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NOTE 4. NOTES PAYABLE
 3 Months Ended
Mar. 31, 2014
Notes to Financial Statements  
NOTE 4. NOTES PAYABLE
    December 31, 2013     (unaudited) March 31, 2014  
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, unsecured, due 2/8/12,                
quarterly interest due, convertible at holder's                
option at $0.3235688 per IMLE share,                
interest rate 30%   $ 10,000     $ 10,000  
                 
Note payable, unsecured, due 2/8/12, quarterly                
interest due, convertible at holder's option at                
$0.3235688 per IMLE share, interest rate 30%   $ 25,000     $ 25,000  
                 
Note payable, unsecured, due 2/17/12, quarterly                
Interest due, convertible at holder's option at                
$0.3235688 per IMLE share, interest rate 30%   $ 25,000     $ 25,000  
                 
Note payable, unsecured, due 2/18/12, quarterly                
Interest due, convertible at holder's option at                
$0.3235688 per IMLE share, interest rate 30%   $ 10,000     $ 10,000  
                 
Note payable, unsecured, due 2/18/13, annually                
Interest due, convertible at holder's option at                
$0.3235688 per IMLE share, interest rate 18%   $ 750     $ 750  
               
Note payable, unsecured, due 2/18/13, annually                
Interest due, convertible at holder's option at                
$0.3235688 per IMLE share, interest rate 18%   $ 6,875     $ 6,875  

  

Note payable, unsecured, due 2/15/13, annually                
Interest due, convertible at holder's option at                
$0.3235688 per IMLE share, interest rate 12%   $ 2,500     $ 2,500  
                 
Note payable, unsecured, due 2/20/13, annually                
Interest due, convertible at holder's option at                
$0.3235688 per IMLE share, interest rate 12%   $ 3,750     $ 3,750  
                 
Note payable, unsecured, due 2/21/13, annually                
Interest due, convertible at holder's option at                
$0.3235688 per IMLE share, interest rate 12%   $ 2,625     $ 2,625  
                 
Note payable, unsecured, due 3/20/13, annually                
Interest due, convertible at holder's option at                
$0.3235688 per IMLE share, interest rate 12%   $ 5,433     $ 5,433  
                 
Note payable, unsecured, due 3/22/13, annually                
Interest due, convertible at holder's option at                
$0.3235688 per IMLE share, interest rate 12%   $ 3,203     $ 3,203  
                 
Note payable, unsecured, due 1/05/13, annually                
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%   $ -     $ -  
                 
Note payable, unsecured, due 2/25/13, annually                
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%   $ 19,250     $ 14,600  
                 
Note payable to related party, unsecured, lien                
against company assets, $731,763,                
5-years at 0% simple interest, due                
7/1/2016, payment amounts                
vary each month.   $ 726,763     $ 726,763  

 

Note payable to related party, lien against company                
assets, unsecured, due 4/19/2013, 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                
8/29/2013, simple interest 8% convertible at holders'                
option at $.249 per TransBiotec 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                
01/31/2013, $12,000 in interest (2 months)   $ -     $ -  
                 
Note payable to non-related party, unsecured, due                
12/13/2013, interest rate 7%   $ 5,342     $ 5,342  
                 
Note payable to non-related party, unsecured, due                
01/31/2013, interest rate 18%   $ 3,938     $ 3,938  
                 
Note payable to non-related party, unsecured, interest                
rate 7%, due on demand, 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, interest rate 7%, default interest 10%,                
stock option   $ 15,000     $ 15,000  

 

Note payable to non-related party, unsecured, due                
01/15/2014, interest rate 7%, default interest 10%,                
stock option   $ 5,000     $ 5,000  
                 
Note payable to non-related party, unsecured, due                
01/20/2014, interest rate 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     $ 32,000  
                 
Note payable to non-related party, unsecured, due                
01/23/2014, interest rate 9%,   $ 50,000     $ 50,000  
                 
Note payable to non-related party, unsecured, due                
04/28/2014, interest rate 7%, default interest 10%,                
stock option   $ 9,440     $ 9,440  
                 
Note payable to non-related party, unsecured, due                
05/05/2014, interest rate 7%, default interest 10%,                
stock option   $ 50,060     $ 50,060  
                 
Note payable to non-related party, unsecured, due                
07/02/2014, interest rate 9%,   $ 15,000     $ 15,000  
                 
Note payable to non-related party, unsecured, due                
10/25/2013, interest rate 18%,   $ 2,000     $ 2,000  
                 
Note payable to non-related party, unsecured, due                
07/29/2014, interest rate 7%, default interest 10%,                
stock option   $ 1,900     $ 1,900  
                 
Note payable to non-related party, unsecured, due                
09/19/2014, interest rate 7%, default interest 10%,                
stock option   $ 10,000     $ 10,000  
                 
Note payable to non-related party, unsecured, due                
09/19/2014, interest rate 7%, default interest 10%,                
stock option   $ 65,000     $ 65,000  
                 
Note payable to non-related party, unsecured, due                
09/29/2014, interest rate 7%, default interest 10%,                
stock option   $ 20,000     $ 20,000  
                 
Note payable to non-related party, unsecured, due                
12/27/2013, interest rate 9%   $ 15,000     $ 15,000  

  

Note payable to non-related party, unsecured, due                
10/28/2014, interest rate 7%, default interest 10%,                
stock option   $ 2,500     $ 2,500  
                 
Note payable to non-related party, unsecured, due                
10/29/2014, interest rate 7%, default interest 10%,                
stock option   $ 10,000     $ 10,000  
                 
Note payable to non-related party, unsecured, due                
11/10/2014, interest rate 7%, default interest 10%,                
stock option   $ 5,000     $ 5,000  
                 
Note payable to non-related party, unsecured, due                
11/12/2014, interest rate 9%, convertible up to the due date   $ 11,000     $ 11,000  
                 
Note payable to non-related party, unsecured, due                
11/20/2014, interest rate 7%, default interest 10%,                
stock option   $ 20,000     $ 20,000  
                 
Note payable to non-related party, unsecured, due                
12/02/2014, interest rate 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     $ 5,000  
                 
Note payable to non-related party, unsecured, due                
1/07/2015, interest rate 7%, default interest 10%,                
stock option   $ -     $ 25,000  
                 
Note payable to non-related party, unsecured, due                
1/28/2015, interest rate 7%, default interest 10%,                
stock option   $ -     $ 1,253  

  

Note payable to non-related party, unsecured, due                
1/29/2015, interest rate 7%, default interest 10%,                
stock option   $ -     $ 3,500  
                 
Note payable to non-related party, unsecured, due                
2/10/2015, interest rate 7%, default interest 10%,                
stock option   $ -     $ 990  
                 
Note payable to non-related party, unsecured, due                
2/17/2015, interest rate 7%, default interest 10%,                
stock option   $ -     $ 4,500  
                 
Note payable to non-related party, unsecured, due                
2/20/2015, interest rate 7%, default interest 10%,                
stock option   $ -     $ 5,000  
                 
Note payable to non-related party, unsecured, due                
3/10/2015, interest rate 7%, default interest 10%,                
stock option   $ -     $ 2,500  
    $ 1,375,861     $ 1,388,954  
                 
Less Note Discounts     22,996       12,332  
                 
Less current portion     (1,185,858 )     (1,209,615 )
                 
Long-term portion   $ 167,007     $ 167,007  

 

Required principal payments from December 31, 2013 forward are as follows:

 

2014   $ 1,221,947  
2015   $ 123,709  
2016   $ 43,298  
2017   $ -  
2018   $ -  
    $ 1,388,954  

 

Interest expense under notes payable for the three months ended March 31, 2014 and March 31, 2013 was $41,854 and $40,400, respectively.

 

During the three months ended March 31, 2014 and March 31, 2013 the Company recognized a beneficial conversion feature expense on borrowing from convertible notes of $10,664 and $77,103, respectively. During the three months ended March 31, 2014 and March 31, 2013 the unamortized note discount from the beneficial conversion feature was $12,332 and $22,996, 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, 2012 and December 31, 2013 were $27,000 and $47,500, 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 three months ended March 31, 2014 and March 31, 2013 of $10,051 and $95,613, 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 March 31 2014 and December 31, 2013 was $143,450 and $150,067 respectively.