12. CONVERTIBLE NOTES PAYABLE (Tables)

7 Months Ended

9 Months Ended

Dec. 31, 2013

Sep. 30, 2014

Convertible Notes Payable Tables

Convertible Notes activity

The table below summarizes our Convertible Notes activity during the year ended December 31, 2013:

	Convertible Notes Payable		Debt Discount		Convertible Notes Payable, Net
June 5, 2013 (Inception)	$	-	$	-	$	-
Proceeds from issuance of convertible debt
12% convertible notes issued December 27,2013		530,000		(85,488)		444,512
8% convertible notes issued December 31,2013		170,000		-		170,000
Amortization of debt discount		-		794		794
Total		700,000		(84,694)		615,306
Current portion of debt		(5,356)		-		(5,356)
Long term portion at December 31, 2013	$	694,644	$	(84,694)	$	609,950

The table below summarizes our convertible notes activity during the nine months ended September 30, 2014:

	Principal		Debt		Accrued
	Balance		Discount		Interest		Total
Balance at December 31, 2013	$	700,000	$	(84,694)	$	871	$	616,177
Issued in the period		1,605,000		(1,605,000)		-		-
Converted into shares of common stock		(485,000)		426,054		(3,669)		(62,615)
Amortization of debt discount		-		219,804		-		219,804
Payment of loan principal		(3,178)		-		-		(3,178)
Interest accrued during period		-		-		203,909		203,909
Interest paid during period		-		-		(201,111)		(201,111)
Balance at September 30, 2014		1,816,822		(1,043,836)		-		772,986
Less: Current portion		(5,927)		-		-		(5,927)
Long-term debt	$	1,810,895	$	(1,043,836)	$	-	$	767,059