9. Notes Payable - Related Parties

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Notes Payable - Related Parties

Note payable, line of credit, 6.35%, unsecured - The balance of the note payable, after monthly principal payments, was $366,395 at September 30, 2016 ($359,390 at December 31, 2015) consisting of principal due of $388,044 less deferred financing costs of $21,649 ($394,028 less $34,638 at December 31, 2015). Principal and interest are paid monthly using an amortization schedule for a fifteen year fully amortizing loan. On September 30, 2016, the note maturity date was extended from December 31, 2017 to January 1, 2020. As consideration for extending the maturity date, the Company granted the lender an option to purchase 800,000 common shares at $.04 per share with an estimated fair value of $14,720 using the Black-Scholes option-pricing model. The option value will be amortized to interest expense over the extension period. The option expires on September 29, 2021