NOTES PAYABLE

12 Months Ended

Dec. 31, 2014

Notes Payable [Abstract]

NOTES PAYABLE

Note 6 NOTES PAYABLE

Notes payable consists of the following at December 31, 2014 and 2013:

	2014		2013
14% Senior Promissory Note payable dated April 15, 2010, as amended on July 13, 2012, for $14,525 bearing interest at 14%, with a maturity date of April 15, 2014. In case of default, the default interest rate is 18%.	$	14,525	$	14,525
Note payable dated April 10, 2010, as amended on April 15, 2012, for $5,188 bearing interest at 14%, with a maturity date of April 15, 2014. In case of default, the default interest rate is 18%.		5,188		5,188
14% Senior Note payable dated April 15, 2010, as amended on April 15, 2013, for $1,290,650 bearing interest at 14%, with a maturity date of April 15, 2014. The Lender owns warrants to purchase a total of 5,162,600 shares of common stock issued by the Company pursuant to two warrant agreements.		1,290,650		1,290,650
Promissory Note payable dated January 31, 2012, as amended on April 30, 2013, for $100,000, plus interest at 14%, with a maturity date of October 31, 2013. The face value of the debt can be converted to the Company’s common stock at a conversion price of $.25 per share.		100,000		100,000
Convertible Promissory Note payable for $230,000 dated February 28, 2013, as amended on August 31, 2013. Amount of loan amended to $245,000 including interest in arrears of $15,000. Interest accrues at 14% and loan matures on November 30, 2013. The face value of the debt can be converted to the Company’s common stock at a conversion price of $.25 per share.		245,000		245,000
Promissory Note payable dated June 13, 2013, for $100,000, plus interest at 14%, with a maturity date of December 13, 2014. The face value of the debt can be converted to the Company’s common stock at a conversion price of $.25 per share.		100,000		100,000
Subtotal	$	1,755,363	$	1,755,363

	2014		2013
Subtotal from page 67	$	1,755,363	$	1,755,363
Senior Note payable dated April 15, 2010, as amended on September 10, 2012, for $10,375 bearing interest at 14%, with an amended maturity date of October 15, 2015. Lender agreed to forgive past due interest of $1,867.50 and note has been converted to a 7% Senior Note, effective April 15, 2014. The lender accepted $933.75 of the interest forgiveness in cash and the remaining $933.75 was added to the loan balance.		11,309		10,375
14% Senior Note payable, dated April 15, 2010, as amended on July 30, 2012, for $15,563 bearing interest at 14%, with a maturity date of April 15, 2013. In case of default, the default interest rate is 18%.		15,563		15,563
Senior Note payable dated April 15, 2010, as amended on July 13, 2012, for $72,625 initially bearing interest at 14%, with an amended maturity date of January 15, 2015. Lender agreed to forgive past due interest of $5,083.75 and note has been converted to a 7% Senior Note, effective October 15, 2013.		72,625		72,625
14% Senior Note payable dated April 15, 2010, as amended on July 6, 2012, for $264,563 bearing interest at 14%, with a maturity date of April 15, 2013. In case of default, the default interest rate is 18%. Per terms of the amendment, the Company agreed to pay the Kennedy Estate $13,228 in cash as compensation and consideration for agreeing to the terms of the amendment to the loan agreement.		264,563		264,563
Convertible Promissory Note payable dated March 2, 2012, as amended on March 2, 2013, for $50,000 bearing interest at 7% payable quarterly in arrears, with a maturity date of March 2, 2014. The face value of the debt can be converted to the Company’s common stock at a conversion price of $.50 per share. The note may be prepaid upon providing five days written notice.		50,000		50,000
14% Senior Note payable dated April 15, 2010, as amended on July 6, 2012, for $68,475 bearing interest at 14%, with an amended maturity date of April 15, 2014. In case of default, the default interest rate is 18%.		68,475		68,475
Subtotal	$	2,237,898	$	2,236,964

	2014		2013
Subtotal from page 68	$	2,237,898	$	2,236,964
Promissory note payable for $250,000, bearing interest at 9%, payable, in conjunction with the note listed below, in the amount of $10,000 per month, beginning October 1, 2011		289,000		189,000
Promissory note payable for $200,000, bearing interest at 8.5%, payable, in conjunction with note listed above, in the amount of $10,000 per month, beginning October 1, 2011.		90,000		190,000
Subordinated Debentures		487,000		537,000
Convertible Promissory Note payable dated March 16, 2013 for $100,000 bearing interest at 10% payable quarterly in arrears, with a maturity date of March 16, 2014. The face value of the debt can be converted to the Company’s common stock at a conversion price of $.25 per share. The note may be prepaid upon providing five days written notice. As additional consideration, a separate three-year warrant agreement was issued which entitles Paul Dorn to purchase 25,000 shares of common stock at $.15 per share. The warrants vest immediately.		100,000		100,000
Note payable dated August 1, 2012, bearing interest at 12%.		25,000		25,000
10% Senior Promissory Note payable dated November 3, 2010, for $1,037.50 bearing interest at 10%, payable semiannually, with a maturity date of April 15, 2012. The note may be prepaid upon providing five days written notice.		1,038		1,038
10% Senior Promissory Note payable dated November 3, 2010, for $15,562.50 bearing interest at 10%, payable semiannually, with a maturity date of April 15, 2012. The note may be prepaid upon providing five days written notice.		15,563		15,563
Subtotal	$	3,245,499	$	3,294,565

	2014		2013
Subtotal from page 69	$	3,245,499	$	3,294,565
Twenty-four Month Convertible Promissory Note payable dated February 7, 2012 for $100,000, bearing interest at 12% payable quarterly in arrears, with a maturity date of February 7, 2014. The face value of the debt can be converted to the Company’s common stock at a conversion price of $.25 per share. The note may be extended for an additional six months.		100,000		100,000
Eighteen Month Convertible Promissory Note payable dated August 30, 2011 for $1,400,000. Extended through January 15, 2014 per terns of an Extension and Forbearance Agreement. Lender is also granted a first lien security interest over all existing and future assets for CompCare de Puerto Rico, Inc, including the arbitration claim against MAPFRE Life Insurance Co. filed on August 10, 2012 at December 2`, 2013. $1,000.000 of proceeds was applied to this debt in 2014 upon receipt of the proceeds from MAFRE		400,000		1,400,000
Eighteen Month Convertible Promissory Note payable dated November 14, 2011 for $625,000. Extended through January 15, 2014 per terns of an Extension and Forbearance Agreement which requires payments of $75,000 each on September 13, 2013 and January 6, 2014. Lender is also granted a first lien security interest over all existing and future assets of CompCare de Puerto Rico, Inc, including the arbitration claim against MAPFRE Life Insurance Co. filed on August 10, 2012 at December 31, 2012.		475,000		550,000
14% Senior Promissory Note payable dated October 24, 2012, for $7,262.50 bearing interest at 14%, payable semiannually, with a maturity date of April 15, 2013. The note may be prepaid upon providing five days written notice.		7,263		7,263
14% Senior Promissory Note payable dated November 30, 2012, for $5,187.50 bearing interest at 14%, payable semiannually, with an amended maturity date of April 15, 2014. The note may be prepaid upon providing five days written notice.		5,188		5,188
Subtotal	$	4,232,950	$	5,357,016

	2014		2013
Subtotal from page 70	$	4,232,950	$	5,357,016
Convertible Promissory Note payable to dated October 6, 2014, for $100,000, bearing interest at 12%, with a maturity date of the earliest of October 6, 2015, the first closing of the Series A-1 Preferred Equity, or an Acquisition Transaction, i.e. the acquisition of all of the Company’s assets. The face value of the debt can be converted to the Company’s common stock at a conversion price of $.11per share. The note may be prepaid at any time without penalty. The note is subordinated in right of payment to all other notes.		100,000		—
Convertible Promissory Note payable dated January 6, 2014, for $50,000, bearing interest at 18%, with a maturity date of the earliest of January 6, 2015, the first closing of the Series A-1 Preferred Equity, or an Acquisition Transaction, i.e. the sale of all of the Company’s assets or by a merger. The face value of the debt can be converted to the Company’s Series A-1 preferred stock at the applicable price per share at the date of conversion. The note may be prepaid at any time without penalty. The note is subordinated in right of payment to all other notes.		50,000		—
Convertible Promissory Note payable dated January 23, 2014, for $67,000, bearing interest at 18%, with a maturity date of the earliest of January 23, 2015, the first closing of the Series A-1 Preferred Equity, or an Acquisition Transaction, i.e. the sale of all of the Company’s assets or by a merger. The face value of the debt can be converted to the Company’s Series A-1 preferred stock at the applicable price per share at the date of conversion. The note may be prepaid at any time without penalty. The note is subordinated in right of payment to all other notes.		67,000		—

Subtotal $ 4,449,950 $ 5,357,016

	2014		2013
Subtotal from page 71	$	4,449,950	$	5,357,016
Convertible Promissory Note payable dated February 25, 2014, for $45,000, bearing interest at 18%, with a maturity date of the earliest of February 25, 2015, the first closing of the Series A-1 Preferred Equity, or an Acquisition Transaction, i.e. the sale of all of the Company’s assets or by a merger. The face value of the debt can be converted to the Company’s Series A-1 preferred stock at the applicable price per share at the date of conversion. The note may be prepaid at any time without penalty. The note is subordinated in right of payment to all other notes.		45,000		—
Convertible Promissory Note payable dated April 14, 2014, for $23,000, bearing interest at 18%, with a maturity date of the earliest of April 14, 2015, the first closing of the Series A-1 Preferred Equity, or an Acquisition Transaction, i.e. the sale of all of the Company’s assets or by a merger. The face value of the debt can be converted to the Company’s Series A-1 preferred stock at the applicable price per share at the date of conversion. The note may be prepaid at any time without penalty. The note is subordinated in right of payment to all other notes.		23,000		—
Convertible Promissory Note payable dated April 21, 2014, for $37,000, bearing interest at 18%, with a maturity date of the earliest of April 21, 2015, the first closing of the Series A-1 Preferred Equity, or an Acquisition Transaction, i.e. the sale of all of the Company’s assets or by a merger. The face value of the debt can be converted to the Company’s Series A-1 preferred stock at the applicable price per share at the date of conversion. The note may be prepaid at any time without penalty. The note is subordinate in right of payment to all other notes.		37,000		—
Convertible Promissory Note payable dated July 1, 2014, for $50,000, bearing interest at 18%, with a maturity date of the earliest of April 14, 2015, the first closing of the Series A-1 Preferred Equity, or an Acquisition Transaction, i.e. the sale of all of the Company’s assets or by a merger. The face value of the debt can be converted to the Company’s Series A-1 preferred stock at the applicable price per share at the date of conversion. The note may be prepaid at any time without penalty. The note is senior in right of payment to all other notes.		50,000		—
Subtotal	$	4,604,950	$	5,357,016

	2014			2013
Subtotal from page 72		4,604,950			8,357,016
Convertible Promissory Note payable dated September 9, 2014, for $50,000, bearing interest at 12%, with a maturity date of the earliest of March 9, 2015, the first closing of the Series A-1 Preferred Equity, or an Acquisition Transaction, i.e. the sale of all of the Company’s assets or by a merger. The face value of the debt can be converted to the Company’s common stock at a conversion price of $.11 per share. The note may be prepaid at any time without penalty. The note is subordinated in right of payment to all other notes.		50,000			—
Convertible Promissory Note payable dated July 17, 2014, for $100,000, bearing interest at 18%, with a maturity date of the earliest of July 17, 2015, the first closing of the Series A-1 Preferred Equity, or an Acquisition Transaction, i.e. the sale of all of the Company’s assets or by a merger. The face value of the debt can be converted to the Company’s Series A-1 preferred stock at the applicable price per share at the date of conversion. The note may be prepaid at any time without penalty. The note is senior in right of payment to all other notes		100,000			—
7½% Senior Note payable dated January 30, 2014, for $51,875 bearing interest at 7½%, with a maturity date of February 15, 2015. This note was issued in exchange for the $50,000 in 7½% Convertible Subordinated Debentures plus accrued interest of $1,875. The note may be prepaid upon providing five days written notice.		51,875			—
	$	4,806,825		$	5,357,016
Less Discounts on Notes		(55,200	)		(111,831	)
Total notes payable		4,751,625			5,245,185
Less: long term portion		(90,000	)		(90,000	)
Current notes payable	$	4,661,625		$	5,155,185