2016

2015

In connection with the acquisition of MultiPay in 2015, the Company assumed three promissory notes. At March 31, 2016, the remaining outstanding notes carried an outstanding balance of $80,297. Payments of $6,300 including principal and interest are due monthly. The notes accrue interest at an annual rate of 15.47% per annum. Total outstanding principal and interest is due on September 16, 2017.

$

80,297

$

96,669

The below notes payable were not initially convertible, except for the accrued interest portion was convertible into common stock of the Company. Further, in January 2017, the below notes, which were being renegotiated, and related accrued interest were converted into common stock of the Company (see note 12).

In August 2015, the Company issued a 12% note in the amount of $27,000. The notes are secured by the assets of the Company, mature in August 2016, and accrued interest is convertible into common stock of the Company at a rate of $0.10 per share. In connection with the issuance of these notes, the Company also issued warrants for the purchase of 180,000 shares of the Company’s common stock at an exercise price of $0.15 per share for a period of five years. The Company also incurred debt issuance costs of $148,160, which are presented as a discount against the note and amortized into interest expense over the term of the notes.

27,000

In September 2015, the Company issued 12% notes in the amount of $973,000. The notes are secured by the assets of the Company, mature in September 2016, and accrued interest is convertible into common stock of the Company at a rate of $0.10 per share. In connection with the issuance of these notes, the Company also issued warrants for the purchase of 6,486,667 shares of the Company’s common stock at an exercise price of $0.15 per share for a period of five years. The Company also incurred debt issuance costs of $77,480, which are presented as a discount against the note and amortized into interest expense over the term of the notes.

973,000

In October 2015, the Company issued 12% notes in the amount of $225,000. The notes are secured by the assets of the Company, mature in October 2016, and accrued interest is convertible into common stock of the Company at a rate of $0.10 per share. In connection with the issuance of these notes, the Company also issued warrants for the purchase of 1,500,000 shares of the Company’s common stock at an exercise price of $0.15 per share for a period of five years. The Company also incurred debt issuance costs of $36,400, which are presented as a discount against the note and amortized into interest expense over the term of the notes.

225,000

In November 2015, the Company issued a 12% note in the amount of $25,000. The note is secured by the assets of the Company, matures in October 2016, and accrued interest is convertible into common stock of the Company at a rate of $0.10 per share. In connection with the issuance of this note, the Company also issued warrants for the purchase of 166,667 shares of the Company’s common stock at an exercise price of $0.15 per share for a period of five years. The Company also incurred debt issuance costs of $94,400, which are presented as a discount against the note and amortized into interest expense over the term of the note.

25,000

In December 2015, the Company issued 12% notes in the amount of $850,000. The notes are secured by the assets of the Company and matures in December 2016. Any unpaid accrued interest on the note is convertible into common stock of the Company at a rate of $0.48 per share. In connection with the issuance of these notes, the Company also issued warrants for the purchase of 1,770,834 shares of the Company’s common stock at an exercise price of $0.48 per share for a period of five years. The conversion price on the accrued interest and the exercise price of the warrants provide the holders with anti-dilution protection that requires these features to be bifurcated and presented as derivative liabilities at their fair values. See Note 8.

850,000