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3. Convertible Note Payable - Stockholder
6 Months Ended
Jun. 30, 2015
Notes  
3. Convertible Note Payable - Stockholder

3.     CONVERTIBLE NOTE PAYABLE - STOCKHOLDER

 

On April 10, 2012, the Company issued an unsecured convertible note payable to a stockholder in exchange for $50,000 in cash for the Company’s working capital needs. The note bore interest at 6% per annum and matured on April 10, 2013. The stockholder had the option to convert the note and accrued interest into the Company’s common stock at $.0125 per share.

 

On April 10, 2013 and April 10, 2014 the note was extended for an additional twelve months. The note bore interest at 6% per annum. The stockholder had the option to convert the note and accrued interest into the Company’s common stock at $.0125 per share. On February 27, 2015 the stockholder exercised his option to convert the note and accrued interest to common stock. The note and accrued interest thereon were converted into 4,693,041 shares of the Company’s common stock.

 

On May 18, 2015, the Company issued an unsecured convertible note payable to a stockholder in exchange for $25,000 in cash for the Company’s working capital needs. The note bears interest at 6% per annum and matures on May 18, 2016. The stockholder has the option to convert the note and accrued interest into the Company’s common stock at $.0125 per share.

 

 

At June 30, 2015 and December 31, 2014, accrued interest on the notes was $181 and $8,186, respectively.  Interest expense amounted to $657 and $1,487 for the six months ended June, 2015 and 2014, respectively. Interest expense amounted to $181 and $747 for the three months ended June 30, 2015 and 2014, respectively.