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Subsequent Events
9 Months Ended
Sep. 30, 2015
Subsequent Events [Abstract]  
Subsequent Events

7. Subsequent Events

 

Convertible Debentures and Warrants

 

During October and November 2015, the Company sold $380,556 of Unsecured Convertible Debentures (the “Debentures”) to accredited investors for aggregate consideration of $350,000. The Debentures mature in twelve months, carry fixed conversion prices ranging from $0.03 to $0.045, an annual interest rate of 10% and are convertible into 10,462,967 shares of common stock at maturity. The Company received net cash proceeds of approximately $319,000 after payment of fees and expenses of $31,000. In addition, the Company issued the holder of the Debentures detachable five-year warrants to purchase 7,453,706 additional shares of common stock at exercise prices ranging from $0.06 to $0.09 per share.

 

During October 2015, a holder of a Convertible Debenture with a face value of $52,632 converted his debenture into 531,636 shares of restricted common stock. In addition, associated with this debenture, the Company paid $25,356 in accrued interest by issuing 256,118 shares of restricted common stock

 

During October and November 2015, two holders of variable rate convertible notes issued to the Company exercise notices totalling 11,788,065 shares of common stock. The common stock was issued for the payment of $39,352 of principal and $11,460 of accrued interest.