| NOTE 4. NOTES PAYABLE |
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December 31,
2015
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June 30,
2016
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(Unaudited) |
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| Note payable to related party, unsecured, due 8/3/2012, interest rate 0%. Currently in default. |
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$ |
1,950 |
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$ |
1,950 |
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| |
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| Notes payable to related party, unsecured, due 12/31/2012, interest rate 0%. Currently in default. |
|
$ |
11,810 |
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$ |
11,810 |
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| |
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| 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 |
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|
$ |
180,001 |
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| |
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| 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 |
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|
$ |
10,000 |
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| |
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| 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 |
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|
$ |
25,000 |
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| |
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| 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 |
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|
$ |
25,000 |
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| |
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| 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 |
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|
$ |
10,000 |
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| |
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| 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 |
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|
$ |
750 |
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| |
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| 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 |
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|
$ |
6,875 |
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| |
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|
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| 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 |
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|
$ |
2,500 |
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| 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 |
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|
$ |
3,750 |
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| 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 |
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|
$ |
2,625 |
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| |
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| 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 |
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|
$ |
5,433 |
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| |
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| 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 |
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$ |
3,203 |
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| Note payable to non-related party, unsecured, due 08/29/2013, simple interest 8% convertible at holder's option at $.249 per TBT-CA share. Currently in default. Principal balance including interest to be paid upon receipt of equity funding and/or sales revenue. |
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$ |
15,000 |
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$ |
15,000 |
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| 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. |
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$ |
5,000 |
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$ |
5,000 |
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| |
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| 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. |
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$ |
3,938 |
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$ |
3,938 |
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| Note payable to related party, unsecured, due 01/23/2014, simple interest 9%. Currently in default. |
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$ |
50,000 |
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|
$ |
50,000 |
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| Note payable to related party, unsecured, due 07/02/2014, simple interest 9%. Currently in default. |
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$ |
15,000 |
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$ |
15,000 |
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| Note payable to non-related party, unsecured, due 10/25/2013, simple interest 18%. Currently in default. |
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$ |
2,000 |
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$ |
2,000 |
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| 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 |
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$ |
15,000 |
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| 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 |
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$ |
5,000 |
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| 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 |
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|
$ |
11,000 |
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| |
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| 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 |
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$ |
15,000 |
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| Note payable to related party, unsecured, due 8/05/2015, simple interest 7%, default interest 10%. Currently in default. Note contains a stock option. |
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$ |
10,000 |
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$ |
10,000 |
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| 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. |
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$ |
106,334 |
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$ |
106,334 |
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| Note payable to non-related party, unsecured, due 3/26/2016, simple interest 8%, convertible at $0.0017 per share. Principal balance including interest to be paid upon the receipt of equity funding and/or sales revenue. Currently in default. |
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$ |
25,000 |
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$ |
25,000 |
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| 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. |
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$ |
13,000 |
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$ |
13,000 |
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| |
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| 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. |
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$ |
45,000 |
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$ |
45,000 |
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| |
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| 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 |
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$ |
2,500 |
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| |
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| 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 |
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$ |
25,000 |
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| Note payable to related party, unsecured, due on demand, simple interest 10%. |
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$ |
- |
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$ |
15,277 |
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| Note payable to related party, unsecured, due 7/23/2016, simple interest 10%. |
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$ |
- |
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$ |
15,000 |
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| Note payable to related party, unsecured, due 5/1/2017, simple interest 7%. Note contains a stock option. |
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$ |
- |
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$ |
3,750 |
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| Note payable to related party, unsecured, due 11/9/2016, simple interest 7%. Note contains a stock option. |
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$ |
- |
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$ |
15,000 |
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$ |
652,669 |
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$ |
701,696 |
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| Less note discounts |
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(6,250 |
) |
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|
- |
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| Less current - related parties |
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(489,095 |
) |
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(538,122 |
) |
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| Less current non-related parties |
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(157,324 |
) |
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(163,574 |
) |
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| Long-term related parties |
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$ |
- |
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$ |
- |
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Required principal payments from June 30, 2016
forward are as follows:
| 2016 |
|
$ |
701,696 |
|
| 2017 |
|
$ |
- |
|
| 2018 |
|
$ |
- |
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| 2019 |
|
$ |
- |
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| 2020 |
|
$ |
- |
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| |
|
$ |
701,696 |
|
Interest expense under notes payable for the
six months ended June 30, 2016 and June 30, 2015 was $58,477 and $88,466, respectively.
During the six months ended June 30, 2016 and
June 30, 2015 the Company recognized a beneficial conversion feature expense on borrowing from convertible notes of $6,250 and
$11,250, respectively.
During the six months ended June 30, 2016 and
June 30, 2015 the unamortized note discount from the beneficial conversion feature was none, and $18,750, 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 June 30, 2016 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 six months ended June
30, 2016 and June 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 June 30, 2016 and December 31,
2015 was none and none, respectively.
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