Quarterly report pursuant to Section 13 or 15(d)

NOTES PAYABLE

v2.4.0.8
NOTES PAYABLE
 9 Months Ended
Sep. 30, 2014
Notes to Financial Statements  
NOTE 4. NOTES PAYABLE
    December 31,
2013 		    (Unaudited) September 30,
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 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 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 2/25/13, 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%.   $ 19,250       -  

 

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.   $ 52,500     $ 39,005  

 

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. Currently in default.   $ 15,000     $ 15,000  

 

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.   $ 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%, stock option. 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 01/15/2014, 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.   $ 5,000     $ 5,000  

 

Note payable to non-related party, unsecured, due 01/20/2014, 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.   $ 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.   $ 32,000     $ 17,000  

 

Note payable to non-related party, unsecured, due 01/23/2014, simple interest 9%. Currently in default.   $ 50,000     $ 50,000  

 

Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. Note payable to non-related party, unsecured, due 04/28/2014, 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.   $ 9,440     $ 9,440  

 

Note payable to non-related party, unsecured, due 05/05/2014, simple interest 7%, default interest 10%, stock option. Currently in default.   $ 50,060     $ 50,060  
                 
Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. 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%, stock option. Currently in default. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue.   $ 1,900     $ 1,900  

 

Note payable to non-related party, unsecured, due 09/19/2014, 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.   $ 10,000     $ 10,000  

 

Note payable to non-related party, unsecured, due 09/19/2014, 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.   $ 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.   $ 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%, stock option.   $ 2,500     $ 2,500  

 

Note payable to non-related party, unsecured, due 10/29/2014, simple interest 7%, default interest 10%, stock option.   $ 10,000     $ 10,000  

 

Note payable to non-related party, unsecured, due 11/10/2014, simple interest 7%, default interest 10%, stock option.   $ 5,000     $ 5,000  

 

Note payable to non-related party, unsecured, due 11/12/2014, interest up to 9%, convertible up to the due date.   $ 11,000     $ 11,000  

 

Note payable to non-related party, unsecured, due 11/20/2014, simple interest 7%, default interest 10%, stock option.   $ 20,000     $ 20,000  

 

Note payable to non-related party, unsecured, due 12/02/2014, simple interest 7%, default interest 10%, stock option.   $ 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.   $ 5,000     $ 4,235  

 

Note payable to non-related party, unsecured, due 1/07/2015, simple interest 7%, default interest 10%, stock option.     -     $ 25,000  

  

Note payable to non-related party, unsecured, due 1/28/2015, simple interest 7%, default interest 10%, stock option.     -     $ 1,253  

 

Note payable to non-related party, unsecured, due 1/29/2015, simple interest 7%, default interest 10%, stock option.     -     $ 3,500  

 

Note payable to non-related party, unsecured, due 2/10/2015, simple interest 7%, default interest 10%, stock option.     -     $ 990  

 

Note payable to non-related party, unsecured, due 2/17/2015, simple interest 7%, default interest 10%, stock option.     -     $ 4,500  

 

Note payable to non-related party, unsecured, due 2/20/2015, simple interest 7%, default interest 10%, stock option.     -     $ 5,000  

 

Note payable to non-related party, unsecured, due 3/10/2015, simple interest 7%, default interest 10%, stock option.     -     $ 2,500  

 

Note payable to non-related party, unsecured, due 3/31/2015, simple interest 7%, default interest 10%, stock option..     -     $ 2,500  

 

Note payable to non-related party, unsecured, due 4/03/2015, simple interest 7%, default interest 10%, stock option.     -     $ 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%, stock option.     -     $ 4,331  

 

Note payable to non-related party, unsecured, due 4/27/2015, simple interest 7%, default interest 10%, stock option.     -     $ 2,500  

 

Note payable to non-related party, unsecured, due 5/13/2015, simple interest 7%, default interest 10%, stock option.     -     $ 5,360  

 

Note payable to non-related party, unsecured, due 8/17/2014, 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%, stock option.     -     $ 895  

 

Note payable to non-related party, unsecured, due 6/10/2015, simple interest 7%, default interest 10%, stock option.     -     $ 3,207  

 

Note payable to non-related party, unsecured, due 6/17/2015, simple interest 7%, default interest 10%, stock option.     -     $ 600  

 

Note payable to non-related party, unsecured, due 7/09/2015, simple interest 7%, default interest 10%, stock option.     -     $ 3,750  

 

Note payable to non-related party, unsecured, due 8/05/2015, simple interest 7%, default interest 10%, stock option.     -     $ 10,000  

 

Note payable to non-related party, unsecured, due 9/03/2015, simple interest 7%, default interest 10%, stock option.     -     $ 1,000  
                 
    $ 1,375,861     $ 1,405,127  
                 
Less note discounts     (22,996 )     (10,580 )
                 
Less current - related parties     (573,516 )     (573,516 )
                 
Less current – non-related parties      (612,342 )     (654,023 )
                 
Long-term – related parties   $ 167,007     $  167,007  

  

Required principal payments from September 30, 2014 forward are as follows:

 

2014   $ 1,238,120  
2015   $ 23,709  
2016   $ 43,298  
2017   $ -  
2018   $ -  
    $ 1,305,127  

  

Interest expense under notes payable for the nine months ended September 30, 2014 and September 30, 2013 was $135,702 and $91,071, respectively.

 

During the nine months ended September 30, 2014 and September 30, 2013 the Company recognized a beneficial conversion feature expense on borrowing from convertible notes of $27,416 and $152,993 respectively. During the nine months ended September 30, 2014 and September 30, 2013 the unamortized note discount from the beneficial conversion feature was $10,580 and $29,164, 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 September 30, 2014 were $47,500 and $34,245, 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 nine months ended September 30, 2014 and September 30, 2013 of $(10,875) and $(70,498), respectively. The fair market value adjustments were based on the Black-Sholes method using the following assumptions: risk free rates ranging between 0.10% - 0.13%, dividend yield of 0%, expected life of 1 year, volatility between 295% - 354%. The fair value derivative liability under the notes as of September 30, 2014 and December 31, 2013 was $72,456 and $150,067 respectively.