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NOTE 5 - CONVERTIBLE DEBENTURES
3 Months Ended
Mar. 31, 2016
Debt Disclosure [Abstract]  
NOTE 5 - CONVERTIBLE DEBENTURES

NOTE 5 - CONVERTIBLE DEBENTURES

 

On May 8, 2015, the Company issued convertible debentures to certain accredited investors. The total principal amount of the debentures was $300,000 with a maturity date of November 8, 2015 with a zero percent interest rate. The debentures are convertible into shares of the Company’s common stock at the lower of the fixed price ($0.89) or fifty five percent (55%) of the average if the three lower trading price for 20 trading days prior to conversion. 

The Company signed a Forbearance Agreement on October 26, 2015 for the 10% Convertible Debenture with the principal amount of $300,000 that was due November 8, 2015. The new maturity date of the debenture is May 8, 2016.

On October 30, 2015, the company entered into a new Debenture with the same Lender, with a face amount of $405,000 having similar terms as the first Convertible Debenture with a maturity date of April 30, 2016. The debenture included a forbearance fee of $90,000 and had an original issue discount of 10%. 

During the three months ended March 31, 2016, the Company issued 11,271,666 shares of common stock by converting $125,000 of the principal of convertible notes payable. 

During the year ended December 31, 2015, the Company issued 6,746,356 shares of common stock by converting $150,000 of the principal of convertible notes payable. 

As of March 31, 2016, the aggregate carrying value of the debentures was $327,000. As of December 31, 2015, the aggregate carrying value of the debentures was $370,500.