5. NOTES PAYABLE (Tables)

12 Months Ended

Dec. 31, 2015

Notes Payable Tables

Schedule of notes payable - related parties

The following is a summary of outstanding convertible notes due to related parties, including accrued interest separately recorded, as of December 31, 2015:

Related party	Nature of relationship	Terms of the agreement	Principal amount		Accrued Interest
S. Oden Howell Revocable Trust (“HRT”)	Mr. S. Oden Howell, Jr. became a member of the Board of Directors in June of 2015	The note is unsecured, bears interest at 10% per annum, matures June 18, 2018 and is convertible into shares of the Company’s Series C Convertible Preferred Stock at a conversion price of $70.00 per share at any time prior to maturity.	$	600,000	$	32,877
James W. Stuckert Revocable Trust (“SRT)	Mr. James Stuckert became a member of the Board of Directors in September of 2015	The note is unsecured, bears interest at 10% per annum, matures June 18, 2018 and is convertible into shares of the Company’s Series C Convertible Preferred Stock at a conversion price of $70.00 per share at any time prior to maturity.		600,000		32,877
Total			$	1,200,000	$	65,754

The following is a summary of outstanding convertible notes due to related parties, including accrued interest separately recorded, as of December 31, 2014:

Related party	Nature of relationship	Terms of the agreement	Principal Amount		Accrued Interest
Brookhaven Medical, Inc. (“BMI”) Convertible Note #1	Former Director of the Company is CEO of BMI	Note in the principal amount of $1,000,000 which accrues interest at 8% per annum.  The note is due June 15, 2015.  The note may be converted, at the option of BMI, into shares of the Company’s Series C Preferred Stock at a conversion price of $70.00 per share.  Secured by assets of the Company.	$	1,000,000	$	16,877
Brookhaven Medical, Inc. (“BMI”) Convertible Note #2	Former Director of the Company is CEO of BMI	Note payable which accrues interest at 8% per annum and allows the Company to drawdown, as needed, an aggregate of $2,000,000, subject to an agreed upon schedule.  The note is due June 15, 2015.  The note may be converted, at the option of BMI, into shares of the Company’s Series C Preferred Stock at a conversion price of $70.00 per share.  Secured by assets of the Company.		200,000		3,375
	Total		$	1,200,000	$	20,252

Schedule of notes payable

The following is a summary of amounts due to unrelated parties, including accrued interest separately recorded, as of December 31, 2015:

Note Payable	Terms of the agreement	Principal Amount		Discount		Principal Net of Discount		Accrued Interest
March 4, 2011 Note Payable	$223,500 note payable; (i) interest accrues at 13% per annum; (ii) maturity date of September 4, 2011; (iii) $20,000 fee due at maturity date with a $1,000 per day fee for each day the principal and interest is late.  This note is currently the subject of litigation  (see Note 12 "Legal Proceedings”)	$	223,500		-	$	223,500	$	117,915
Third Quarter 2012 Secured Subordinated Promissory Notes	Seventeen notes in the original aggregate principal amount of $1,055,000; (i) 5% interest due on maturity date; (ii) maturity date of October 12, 2012; (iii) after the maturity date interest shall accrue at 18% per annum and the company shall pay to the note holders on a pro rata basis, an amount equal to twenty percent of the sales proceeds received by the Company and its subsidiary, WCI, from the sale of surgical powders, until such time as the note amounts have been paid in full.  As of March 31, 2015 three of these notes remain due.		110,000		-		110,000		67,558
September 28, 2012 Promissory Note	$51,300 note payable (i) interest accrues at 10% per annum; (ii) original maturity date of December 31, 2012; (iii) default interest rate of 15% per annum.  As of March 31, 2014 $11,300 of this note remains due.		11,300		-		11,300		14.748
Quest Capital Investors, LLC	Furniture purchase agreement in the original amount of $11,700 with $300 payments due each month. Secured by fixed assets of the Company.		3,900		-		3,900		-
May 28, 2015 Promissory Note	$96,000 note payable (i) interest accrues at 10% per annum; (II) original maturity date of May 28, 2016:		96,000		-		96,000		2,420
June 26, 2015 Convertible Promissory Note	Note payable which accrues interest at 5% per annum.  The note is due September 26, 2016.  The note may be converted, into common shares of the Company at the option of the Company at a rate equal to 90% of the volume weighted average price of the company’s common stock for the 5 trading days preceding the date of conversion.		170,000		-		170,000		4,674
Total		$	614,700		-	$	614,700	$	207,315

The following is a summary of amounts due to unrelated parties, including accrued interest separately recorded, as of December 31, 2014:

Note Payable	Terms of the agreement	Principal Amount		Discount		Principal Net of Discount		Accrued Interest
March 4, 2011 Note Payable	$223,500 note payable; (i) interest accrues at 13% per annum; (ii) maturity date of September 4, 2011; (iii) $20,000 fee due at maturity date with a $1,000 per day fee for each day the principal and interest is late.  This note is currently the subject of litigation  (see Note 12 "Legal Proceedings”)	$	223,500		-	$	223,500	$	88,456
MAH Holding, LLC	Unsecured note with interest accrued at 10% per annum, due on demand. This note is currently the subject of litigation  (see Note 12 "Legal Proceedings”)		40,620		-		40,620		14,861
Third Quarter 2012 Secured Subordinated Promissory Notes	Seventeen notes in the original aggregate principal amount of $1,055,000; (i) 5% interest due on maturity date; (ii) maturity date of October 12, 2012; (iii) after the maturity date interest shall accrue at 18% per annum and the company shall pay to the note holders on a pro rata basis, an amount equal to twenty percent of the sales proceeds received by the Company and its subsidiary, WCI, from the sale of surgical powders, until such time as the note amounts have been paid in full.  As of March 31, 2014 three of these notes remain due, of which two are with unrelated parties in the aggregate principal amount of $110,000.		110,000		-		110,000		47,483
September 28, 2012 Promissory Note	$51,300 note payable (i) interest accrues at 10% per annum; (ii) maturity date of December 31, 2012; (iii) default interest rate of 15% per annum.  As of March 31, 2014 $11,300 of this note is was past due.		11,300		-		11,300		10,379
Quest Capital Investors, LLC	Furniture purchase agreement in the original amount of $11,700 with $300 payments due each month. Secured by fixed assets of the Company.		7,500		-		7,500		-
Total		$	392,920		-	$	392,920	$	161,179