Convertible Notes Payable, Including Related Party

12 Months Ended

Dec. 31, 2016

Convertible Notes Payable Related Party [Abstract]

CONVERTIBLE NOTES PAYABLE, INCLUDING RELATED PARTY

NOTE 3 – CONVERTIBLE NOTES PAYABLE, INCLUDING RELATED PARTY

Convertible notes payable at December 31, 2016 and 2015 consist of the following:

	2016			2015
Convertible notes to stockholder due on various dates through August 24, 2016; interest at 4%; convertible in shares of common stock at 90% of the Company’s stock price at date of conversion. (in default at December 31, 2016)	$	59,599		$	51,212
Convertible note to investor due on September 22, 2017; interest at 10%; included an original issue discount of $7,245; convertible in shares of common stock at 50% of the Company's stock price at date of conversion.		56,750			--
Convertible note to investor due on July 3, 2017; interest at 10%; convertible in shares of common stock at 50% of the Company's stock price at date of conversion.		58,745			--
		175,094			51,212
Less debt discount		(80,796	)		(19,887	)
Convertible notes, net of discount	$	94,298		$	31,325
Convertible notes payable - related party	$	59,599		$	51,212
Less debt discount		--			(19,887	)
Convertible notes - related party, net of discount	$	59,599		$	31,325
Convertible notes payable - unrelated parties	$	115,495		$	--
Less debt discount		(80,796	)		--
Convertible notes - unrelated parties, net of discount	$	34,699		$	--

During the year ended December 31, 2016, the Company issued convertible notes in the aggregate principal amount of $267,511. Due to the variable conversion price associated with these convertible notes, the Company has determined that the conversion feature is considered derivative liabilities. The embedded conversion feature was initially calculated to be $459,316, which is recorded as a derivative liability as of the date of issuance. In addition, for one of the convertible notes the Company also issued 26 warrants with an exercise price of $950 subject to change if securities are issued at a price per share below the exercise price. This provision results in the warrant being a derivative liability initially calculated to be $26,900. The derivative liability was first recorded as a debt discount up to the face amount of the convertible notes of $267,511, with the remainder being charge as a financing cost during the period. The debt discount is being amortized over the terms of the convertible notes. The Company recognized interest expense of $206,602 during the year ended December 31, 2016 related to the amortization of the debt discount.