NOTES PAYABLE - CURRENT

12 Months Ended

Dec. 31, 2018

Notes Payable, Current [Abstract]

NOTES PAYABLE - CURRENT

Notes payable consist of:

	December 31,
	2018		2017
Note payable, 10%, unsecured (A)	$	0	$	30,000
Demand note payable, 10%, secured by software (B)		12,500		12,500
Demand note payable to former director, 10%, unsecured		30,000		30,000
Convertible demand note payable to former director, 12%, unsecured (C)		40,000		40,000
Convertible notes payable, 6% (D)		150,000		150,000
Convertible term note payable, 7%, secured (E)		100,000		100,000
	$	332,500	$	362,500

(A) Note payable, 10%, unsecured - At December 31, 2018, the  Company concluded that they have been legally released from a liability. Accordingly, a gain on settlement of debt in the amount of $83,250 has been recorded, representing the $30,000 principal balance, as well as $53,250 of accrued interest.

(B) Demand note payable, 10%, secured by software - During 2015, the Company issued a note in connection with the purchase of software, which note matured on June 30, 2016.

(C) Convertible demand note payable to former director, 12%, unsecured - At December 31, 2018 and 2017, the Company was obligated for $40,000 with interest at 12%. The note is unsecured and principal is convertible at the option of the holder into shares of common stock at $.11 per share.

(D) Convertible notes payable, 6%, maturity date of December 31, 2016 - At December 31, 2018, the Company was obligated to unrelated third parties for $150,000 ($150,000 - 2017). The principal is unsecured and convertible at the option of the holders into shares of common stock at $.05 per share. The notes bear interest at 6.0% at December 31, 2018 (6.0% - 2017). The Notes are convertible into shares of common stock subject to the following limitations. The Notes are not convertible to the extent that shares of common stock issuable upon the proposed conversion would result in a change in control of the Company which would limit the use of its net operating loss carryforwards; provided, however if the Company closes a transaction with another third party or parties that results in a change of control which will limit the use of its net operating loss carryforwards, then the foregoing limitation shall lapse. Prior to any conversion by a requesting note holder, each note holder holding a note which is then convertible into 5% or more of the Company’s common stock shall be entitled to participate on a pari passu basis with the requesting note holder and upon any such participation the requesting note holder shall proportionately adjust his conversion request such that, in the aggregate, a change of control, which will limit the use of the Company’s net operating loss carryforwards, does not occur.

(E) Convertible term note payable, 7%, secured, maturity date of October 4, 2016 - The note bears interest at the rate of 7% per annum, payable monthly, and is secured by a subordinate lien on all the Company’s assets. The note's principal is convertible at the option of the holder into shares of the Company’s common stock at $.10 per share, which was the price of the Company's common stock on the closing date of the agreement.

Notes payable - related parties consist of:

	December 31,
	2018		2017
Demand notes payable to officer and director, 6%, unsecured	$	82,000	$	12,000
Demand note payable to director, 6%, unsecured		20,000		20,000
	$	102,000	$	32,000