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3. Convertible Note Payable - Stockholder
9 Months Ended
Sep. 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 and matured on April 10, 2015. 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 September 30, 2015 and December 31, 2014, accrued interest on the notes were $559 and $8,186, respectively.  Interest expense amounted to $1,036 and $2,244 for the nine months ended September 30, 2015 and 2014, respectively. Interest expense amounted to $379 and $757 for the three months ended September 30, 2015 and 2014, respectively.