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Convertible Note Payable (Tables)

12 Months Ended

Dec. 31, 2016

Description

December 31, 2016

December 31, 2015

In connection with the SEA, the Company assumed three convertible promissory notes for an aggregate of $13,670, net of debt discount. The notes mature on September 14, 2014 and accrue interest at a rate of 12% per annum. The note principal is convertible at a price of $.00382 per share. At issuance the fair market value of the Company’s common stock was $.013 per share. The conversion feature of the note is considered beneficial to the investor due to the conversion price for the convertible note being lower than the fair market value of the common stock on the date the note was issued. The beneficial conversion feature was recorded at the debt’s inception as a discount of the debt of $76,429 and is being amortized over the lives of the convertible debt. Amortization of debt discount during the year ended December 31, 2016 and 2015 was $0 and $0, respectively and the unamortized discount at December 31, 2016 and 2015 was $0 and $0, respectively. Interest expense recorded on the convertible notes for the twelve months ended December 31, 2016 and 2015 was $3,060 and $5.060, respectively.

One of the holders of the convertible promissory notes with a principal value of $25,476, entered into note purchase and assignment agreements whereby half of the principal of the note was assigned to two separate note holders. The original note was substituted and replaced by two amended and restated 12% convertible promissory notes with restated principal amounts of $12,738 each. All other terms of the original note remain in effect.

10,255

33,729

In connection with the SEA, the Company assumed a convertible note for an aggregate of $36,363, net of debt discount. The note matures on November 7, 2014 and interest accrues at a rate of 20% per annum. The note principal is convertible into common stock at the rate of $.001 per share or 50 million shares of the Company’s common stock but such conversion can only take effect upon default of the note. The note is secured by 59,400,000 shares of the Company’s common stock. In conjunction with the note the Company issued 750,000 shares of restricted common stock and 1,000,000 common stock purchase warrants exercisable for twelve months at $.10 per warrant for one share of Company common stock.

The relative fair value of the common stock and warrants at the debt’s inception of $6,884 and $9,121, respectively were recorded as a discount to the debt and are being amortized to debt discount over the life of the debt. The fair value of the warrants was calculated using the Black-Scholes option pricing model with the following assumptions: expected life of 1.0 years; volatility of 606.16%; no dividend yield; and a risk free interest rate of 0.11%. Amortization of debt discount during the year ended December 31, 2016 and 2015 was $0 and $325, respectively and the unamortized discount at December 31, 2016 and 2015 was $0 and $0, respectively. Interest expense recorded on the convertible note for the year ended December 31, 2016 and 2015 was $3,879 and $1,203, respectively.

30,000

On November 17, 2013, the Company issued a $10,000 convertible promissory note. The note matures on May 17, 2015 and accrues interest at a rate of 12% per annum. The note principal and interest are convertible at a price of $.10 per share. In conjunction with the note, the Company issued 100,000 common stock purchase warrants exercisable for twelve months at a price of $.125 per share. The relative fair value of the warrants at inception of $1,297 was recorded as a discount to the debt and is being amortized to debt discount over the life of the debt. The fair value of the warrants was calculated using the Black-Scholes option pricing model with the following assumptions: expected life of 1.0 years; volatility of 608.68%; no dividend yield; and a risk free interest rate of 0.13%.

10,000

Amortization of debt discount during the year ended December 31, 2016 and 2015 was $0 and $325, respectively and the unamortized discount at December 31, 2016 and 2015 was $0 and $0, respectively. Interest expense recorded on the convertible note for the year ended December 31, 2016 and 2015 was $3,879 and $1,203, respectively.

On February 13, 2014, the Company issued two $5,000 convertible promissory notes. The notes mature on May 31, 2015 and accrue interest at a rate of 12% per annum. The note principal and interest are convertible at a price of $.10 per share. In conjunction with the notes, the Company issued 100,000 common stock purchase warrants exercisable for twelve months at a price of $.125 per share. The relative fair value of the warrants at inception of $3,324 was recorded as a discount to the debt and is being amortized to debt discount over the life of the debt. The fair value of the warrants was calculated using the Black-Scholes option pricing model with the following assumptions: expected life of 1.0 years; volatility of 600.29%; no dividend yield; and a risk free interest rate of 0.12%. Amortization of debt discount during the year ended December 31, 2016 and 2015 was $0 and $1,064, respectively and the unamortized discount at December 31, 2016 and 2016 was $0 and $0, respectively. Interest expense recorded on the convertible note for the year ended December 31, 2016 and 2015 was $1,207 and $1,203, respectively.	10,000	10,000

On April 17, 2014, the Company issued a $10,000 convertible promissory note. The note matures on October 17, 2015 and accrues interest at a rate of 12% per annum. The note principal and interest are convertible at a price of $.10 per share. In conjunction with the notes, the Company issued 100,000 common stock purchase warrants exercisable for twelve months at a price of $.125 per share. The relative fair value of the warrants at inception of $8,000 was recorded as a discount to the debt and is being amortized to debt discount over the life of the debt. The fair value of the warrants was calculated using the Black-Scholes option pricing model with the following assumptions: expected life of 1.0 years; volatility of 444.14%; no dividend yield; and a risk free interest rate of 0.11%.	5,000	10,000

Amortization of debt discount during the year ended December 31, 2016 and 2015 was $0 and $5,292, respectively and the unamortized discount at December 31, 2016 and 2015 was $0 and $0, respectively. Interest expense recorded on the convertible notes for the year ended December 31, 2016 and 2015 was $603 and $852, respectively.

On May 29, 2014, the Company issued a $10,000 convertible promissory note. The note matures on December 10, 2015 and accrues interest at a rate of 12% per annum. The note principal and interest are convertible at a price of $.10 per share. In conjunction with the notes, the Company issued 100,000 common stock purchase warrants exercisable for twelve months at a price of $.125 per share. The relative fair value of the warrants at inception of $8,400 was recorded as a discount to the debt and is being amortized to debt discount over the life of the debt. The fair value of the warrants was calculated using the Black-Scholes option pricing model with the following assumptions: expected life of 1.0 years; volatility of 290.82%; no dividend yield; and a risk free interest rate of 0.10%. Amortization of debt discount during the year ended December 31, 2015 and 2014 was $6,143 and $3,857, respectively and the unamortized discount at December 31, 2015 2014 was $0 and $6,143, respectively. Interest expense recorded on the convertible notes for the year ended December 31, 2015 and 2014 was $1,203 and $713, respectively.	10,000	10,000

On July 7, 2014, the Company issued a $10,000 convertible promissory note. The note matures on July 7, 2015 and accrues interest at a rate of 12% per annum. The note principal and interest are convertible at a price of $.10 per share. In conjunction with the notes, the Company issued 100,000 common stock purchase warrants exercisable for twelve months at a price of $.125 per share. The relative fair value of the warrants at inception of $8,400 was recorded as a discount to the debt and is being amortized to debt discount over the life of the debt. The fair value of the warrants was calculated using the Black-Scholes option pricing model with the following assumptions: expected life of 1.0 years; volatility of 290.82%; no dividend yield; and a risk free interest rate of 0.12%.	10,000	10,000

Amortization of debt discount during the year ended December 31, 2016 and 2015 was $0 and $5,151, respectively and the unamortized discount at December 31, 2016 and 2015 was $0 and $0, respectively. Interest expense recorded on the convertible notes for the year ended December 31, 2016 and 2015 was $1,207 and $1,203, respectively.

On April 21, 2015, we entered into a convertible promissory note pursuant to which we borrowed $26,500, including a debt discount of $1,650. Interest under the convertible promissory note is 8% per annum, and the principal and all accrued but unpaid interest is due on April 20, 2016. The note is convertible at any time following the issuance date at noteholders option into shares of our common stock at a variable conversion price of 60% of the lowest average three day market price of our common stock during the 15 trading days up until date the notice of conversion. The Company recorded a debt discount in the amount of $26,500 in connection with the initial valuation of the derivative liability of the Note to be amortized utilizing the effective interest method of accretion over the term of the Note. Further, the Company recognized a derivative liability of $31,976 and an intital loss of $5,326 based on the Black Scholes Merton pricing model.

Amortization of debt discount during the year ended December 31, 2016 and 2015 was $0 and $5,151, respectively and the unamortized discount at December 31, 2016 and 2015 was $0 and $0, respectively. Interest expense recorded on the convertible notes for the year ended December 31, 2016 and 2015 was $289 and $1,203, respectively.	-	21,443

On April 29, 2015, the Company issued a convertible promissory note in which the Company will be taking tranche payments, the total of these payments cannot exceed $400,000. There is an original discount component of 10% per tranche. Therefore, the funds available to the Company will be $360,000 and the liability (net of interest) will be $400,000 when all disbursements have been received by the Company. Each tranche is accounted for separately with each principal and OID balance becoming due 24 months after receipt. Each tranche bears interest at 0% for the first 90 days and 12% per annum thereafter. The loan is secured by shares of the Company’s common stock. Each portion of the loan becomes convertible immediatly after date of the note. The loan and any accrued interest can then be converted into shares of the Company’s common stock at a rate of 60% multiplied by the market price, which is the lowest quoted price for the common stock during the 25 trading day period ending on the latest complete trading day prior to the conversion date. During the year ended December 31, 2015, the Company has received two tranche disbursements of $25,000 and $30,000 on April 29, 2015 and November 10, 2015, respectivley. The tranches included an original issue discount of $2,779 and $3,000. Additionally, the Company recorded a debt discount related to the two tranches in the amount of $60,779 in connection with the initial valuation of the derivative liability of the Note to be amortized utilizing the effective interest method of accretion over the term of the Note. Further, the Company recognized derivative liability of $112,163 and an intital loss of $64,716 based on the Black Scholes Merton pricing model.

Amortization of debt discount during the year ended December 31, 2016 and 2015 was $46,707 and $8,319, respectively and the unamortized discount at December 31, 2016 and 2015 was $0 and $46,737, respectively. Interest expense recorded on the convertible notes for the year ended December 31, 2016 and 2015 was $1,737 and $1,737, respectively.	-	47,447

On April 28, 2015, we entered into a convertible promissory note pursuant to which we borrowed $40,000, including a debt discount of $3,500. Interest under the convertible promissory note is 12% per annum, and the principal and all accrued but unpaid interest is due on April 28, 2016. The note is convertible at any time following the issuance date at noteholders option into shares of our common stock at a variable conversion price of the lower of the closing sale price of common stock on the trading day immediately preceding the conversion date and 50% of the lowest market price of our common stock during the 20 trading days up until date the notice of conversion. The Company recorded a debt discount in the amount of $40,000 in connection with the initial valuation of the derivative liability of the Note to be amortized utilizing the effective interest method of accretion over the term of the Note. Further, the Company recognized a derivative liability of $62,240 and an intital loss of $22,240 based on the Black Scholes Merton pricing model.

Amortization of debt discount during the year ended December 31, 2015 and 2014 was $25,391 and $0, respectively and the unamortized discount at December 31, 2015 2014 was $12,140 and $0, respectively. Interest expense recorded on the convertible notes for the year ended December 31, 2015 and 2014 was $3,261 and $0, respectively.

40,000

On April 23, 2015, we entered into a convertible promissory note pursuant to which we borrowed $25,000. Interest under the convertible promissory note is 8% per annum, and the principal and all accrued but unpaid interest is due on April 23, 2016. The note is convertible at any time following the issuance date at noteholders option into shares of our common stock at a variable conversion price of 50% of the lowest market price of our common stock during the 15 trading days prior the date of the notice of conversion. The Company recorded a debt discount in the amount of $25,000 in connection with the initial valuation of the derivative liability of the Note to be amortized utilizing the effective interest method of accretion over the term of the Note. Further, the Company recognized a derivative liability of $38,340 and an intital loss of $13,340 based on the Black Scholes Merton pricing model. On September 9, 2015, the note holder converted $5,000 of the note payable into 1,000,000 shares of common stock. The converted portion of the note also had an associated derivative liability with a fair value on the date of conversion of $8,608.

Amortization of debt discount during the year ended December 31, 2016 and 2015 was $7.973 and $17,027, respectively and the unamortized discount at December 31, 2016 and 2015 was $0 and $7,973, respectively. Interest expense recorded on the convertible notes for the year ended December 31, 2016 and 2015 was $2,713 and $1,109, respectively.

20,000

On May 12, 2015, we entered into a convertible promissory note pursuant to which we borrowed $57,500, including a debt discount of $7,500. Interest under the convertible promissory note is 8% per annum, and the principal and all accrued but unpaid interest is due on April 23, 2016. The note is convertible at any time following the issuance date at noteholders option into shares of our common stock at a variable conversion price of 60% of the lowest day market price of our common stock during the 15 trading days prior the date of the notice of conversion. The Company recorded a debt discount in the amount of $50,000 in connection with the initial valuation of the derivative liability of the Note to be amortized utilizing the effective interest method of accretion over the term of the Note. Further, the Company recognized a derivative liability of $68,020 and an intital loss of $18,020 based on the Black Scholes Merton pricing model.

Amortization of debt discount during the year ended December 31, 2016 and 2015 was $19,273 and $38,254, respectively and the unamortized discount at December 31, 2016 and 2015 was $0 and $19,273, respectively. Interest expense recorded on the convertible notes for the year ended December 31, 2016 and 2015 was $5,470 and $2,949, respectively.

57,500

On July 10, 2015, we entered into a convertible promissory note pursuant to which we borrowed $25,000, including a debt discount of $3,500. Interest under the convertible promissory note is 12% per annum, and the principal and all accrued but unpaid interest is due on January 30, 2016. The note is convertible at any time following the issuance date at noteholders option into shares of our common stock at a variable conversion price of 60% of the lowest day market price of our common stock during the 10 trading days prior the date of the notice of conversion. The Company recorded a debt discount in the amount of $25,000 in connection with the initial valuation of the derivative liability of the Note to be amortized utilizing the effective interest method of accretion over the term of the Note. Further, the Company recognized a derivative liability of $31,241 and an intital loss of $6,241 based on the Black Scholes Merton pricing model.

Amortization of debt discount during the year ended December 31, 2016 and 2015 was $4,191 and $24,309, respectively and the unamortized discount at December 31, 2016 and 2015 was $0 and $0, respectively. Interest expense recorded on the convertible notes for the year ended December 31, 2016 and 2015 was $2,975 and $1,438, respectively.

25,000

On August 21, 2015, we entered into a convertible promissory note pursuant to which we borrowed $55,750, including a debt discount of $5,750. Interest under the convertible promissory note is 10% per annum, and the principal and all accrued but unpaid interest is due on May 21, 2016. The note is convertible at any time following the issuance date at noteholders option into shares of our common stock at a variable conversion price of 55% of the lowest day market price of our common stock during the 25 trading days prior the date of the notice of conversion. The Company recorded a debt discount in the amount of $55,750 in connection with the initial valuation of the derivative liability of the Note to be amortized utilizing the effective interest method of accretion over the term of the Note. Further, the Company recognized a derivative liability of $85,313 and an intital loss of $29,563 based on the Black Scholes Merton pricing model.

Amortization of debt discount during the year ended December 31, 2016 and 2015 was $31,872 and $29,628, respectively and the unamortized discount at December 31, 2016 and 2015 was $0 and $0, respectively. Interest expense recorded on the convertible notes for the year ended December 31, 2016 and 2015 was $9,916 and $3,208, respectively.

55,750

On September 9, 2015, we entered into a convertible promissory note pursuant to which we borrowed $50,000. Interest under the convertible promissory note is 8% per annum, and the principal and all accrued but unpaid interest is due on June 7, 2016. The note is convertible at any time following the issuance date at noteholders option into shares of our common stock at a variable conversion price of 50% of the lowest day market price of our common stock during the 10 trading days prior the date of the notice of conversion. The Company recorded a debt discount in the amount of $50,000 in connection with the initial valuation of the derivative liability of the Note to be amortized utilizing the effective interest method of accretion over the term of the Note. Further, the Company recognized a derivative liability of $86,459 and an intital loss of $36,459 based on the Black Scholes Merton pricing model. Amortization of debt discount during the year ended December 31, 2016 and 2015 was $29,228 and $20,772, respectively and the unamortized discount at December 31, 2016 and 2015 was $0 and $0, respectively. Interest expense recorded on the convertible notes for the year ended December 31, 2016 and 2015 was $5,260 and $1,249, respectively.	50,000	50,000

On September 22, 2015, we entered into a convertible promissory note pursuant to which we borrowed $15,000. Interest under the convertible promissory note is 10% per annum, and the principal and all accrued but unpaid interest is due on March 22, 2016. The note is convertible at any time following the issuance date at noteholders option into shares of our common stock at a variable conversion price of 50% of the lowest day market price of our common stock during the 25 trading days prior the date of the notice of conversion. The Company recorded a debt discount in the amount of $15,000 in connection with the initial valuation of the derivative liability of the Note to be amortized utilizing the effective interest method of accretion over the term of the Note. Further, the Company recognized a derivative liability of $24,253 and an intital loss of $9,253 based on the Black Scholes Merton pricing model.

Amortization of debt discount during the year ended December 31, 2016 and 2015 was $6,758 and $8,242, respectively and the unamortized discount at December 31, 2016 and 2015 was $0 and $0, respectively. Interest expense recorded on the convertible notes for the year ended December 31, 2016 and 2015 was $1,919 and $415, respectively.	15,000	15,000

On September 23, 2015, we entered into a convertible promissory note pursuant to which we borrowed $25,000. Interest under the convertible promissory note is 10% per annum, and the principal and all accrued but unpaid interest is due on March 23, 2016. The note is convertible at any time following the issuance date at noteholders option into shares of our common stock at a variable conversion price of 50% of the lowest day market price of our common stock during the 25 trading days prior the date of the notice of conversion. The Company recorded a debt discount in the amount of $25,000 in connection with the initial valuation of the derivative liability of the Note to be amortized utilizing the effective interest method of accretion over the term of the Note. Further, the Company recognized a derivative liability of $40,438 and an intital loss of $15,438 based on the Black Scholes Merton pricing model.

Amortization of debt discount during the year ended December 31, 2016 and 2015 was $11,401 and $13,599, respectively and the unamortized discount at December 31, 2016 and 2015 was $0 and $0, respectively. Interest expense recorded on the convertible notes for the year ended December 31, 2016 and 2015 was $3,192 and $685, respectively.	25,000	25,000

On November 5, 2015, we entered into a convertible promissory note pursuant to which we borrowed $30,500, including a debt discount of $5,500. Interest under the convertible promissory note is 12% per annum, and the principal and all accrued but unpaid interest is due on August 5, 2016. The note is convertible at any date following 90 days after the issuance date at noteholders option into shares of our common stock at a variable conversion price of 50% of the lowest day market price of our common stock onthe date of the notice of conversion.

Amortization of debt discount during the year ended December 31, 2016 and 2015 was $4,376 and $1,124, respectively and the unamortized discount at December 31, 2016 and 2015 was $0 and $0, respectively. Interest expense recorded on the convertible notes for the year ended December 31, 2016 and 2015 was $4,242 and $572, respectively.	30,500	30,500

On February 17, 2016, we entered into a convertible promissory note pursuant to which we borrowed $100,000. Interest under the convertible promissory note is 12% per annum, and the principal and all accrued but unpaid interest is due on November 17, 2016. The note is convertible at any date after the issuance date at noteholders option into shares of our common stock at a variable conversion price of 50% of the lowest day market price of our common stock during the previous 20 days to the date of the notice of conversion or the date the note was executed. The Company recorded a debt discount in the amount of $100,000 in connection with the initial valuation of the derivative liability of the Note to be amortized utilizing the effective interest method of accretion over the term of the Note. Further, the Company recognized a derivative liability of $650,708 and an initial loss of $550,708 based on the Black Scholes Merton pricing model.

Amortization of debt discount during the year ended December 31, 2016 and 2015 was $100,000 and $0, respectively and the unamortized discount at December 31, 2016 and 2015 was $0 and $0, respectively. Interest expense recorded on the convertible notes for the year ended December 31, 2016 and 2015 was $7,440 and $0, respectively.	70,945	-

On April 1, 2016, we entered into a convertible promissory note pursuant to which we borrowed $100,000. Interest under the convertible promissory note is 12% per annum, and the principal and all accrued but unpaid interest is due on December 22, 2016 The note is convertible at any date after the issuance date at noteholders option into shares of our common stock at a variable conversion price of 50% of the average three (3) two (2) lowest day market price of our common stock during the previous 20 days immediately preceding the conversion date. The Company recorded a debt discount in the amount of $100,000 in connection with the initial valuation of the derivative liability of the Note to be amortized utilizing the effective interest method of accretion over the term of the Note. Further, the Company recognized a derivative liability of $221,148 and an initial loss of $121,148 based on the Black Scholes Merton pricing model.

Amortization of debt discount during the year ended December 31, 2016 and 2015 was $110,000 and $0, respectively and the unamortized discount at December 31, 2016 and 2015 was $0 and $0, respectively. Interest expense recorded on the convertible notes for the year ended December 31, 2016 and 2015 was $1,863 and $0, respectively.	20,608	-

On June 24, 2016, we entered into a convertible promissory note pursuant to which we borrowed $64,000 including a debt discount of $3,200. Interest under the convertible promissory note is 12% per annum, and the principal and all accrued but unpaid interest is due on December 22, 2016. The note is convertible at any date after the issuance date at noteholders option into shares of our common stock at a variable conversion price of 50% of the average three (3) two (2) lowest day market price of our common stock during the previous 20 days immediately preceding the conversion date. The Company recorded a debt discount in the amount of $64,000 in connection with the initial valuation of the derivative liability of the Note to be amortized utilizing the effective interest method of accretion over the term of the Note. Further, the Company recognized a derivative liability of $112,104 and an initial loss of $48,104 based on the Black Scholes Merton pricing model.

Amortization of debt discount during the year ended December 31, 2016 and 2015 was $67,200 and $0, respectively and the unamortized discount at December 31, 2016 and 2015 was $0 and $0, respectively. Interest expense recorded on the convertible notes for the year ended December 31, 2016 and 2015 was $4,019 and $0, respectively.		64,000			-

On July 18, 2016, we entered a convertible promissory note pursuant to which we borrowed $237,750 including a debt discount of $20,000. Interest under the convertible promissory note is 10% per annum, and the principal and all accrued but unpaid interest is due on April 18, 2017. The note is convertible at any date after the issuance date at noteholders option into shares of our common stock at a variable conversion price of 55% of the lowest day market price of our common stock during the previous 25 days immediately preceding the conversion date. The Company recorded a debt discount in the amount of $237,750 in connection with the initial valuation of the derivative liability of the Note to be amortized utilizing the effective interest method of accretion over the term of the Note. Further, the Company recognized a derivative liability of $1,080,870 and an initial loss of $843,120 based on the Black Scholes Merton pricing model.

Amortization of debt discount during the year ended December 31, 2016 and 2015 was $156,155 and $0, respectively and the unamortized discount at December 31, 2016 and 2015 was $101,595 and $0, respectively. Interest expense recorded on the convertible notes for the year ended December 31, 2016 and 2015 was $10,878 and $0, respectively.		237,750			-

Less discounts		(101,594	)		(177,596	)
Convertible notes net of discount	$	477,464		$	323,773

Schedule of Fair Value Assumption of Derivative Notes

The Black-Scholes model utilized the following inputs to value the derivative liability at the date of issuance of the convertible note and at December 31, 2016 and 2015:

Fair value assumptions – derivative notes:	December 31, 2015
Risk free interest rate		0.16-1.06	%
Expected term (years)		0.721-2.00
Expected volatility		322.88	%
Expected dividends		0	%

Fair value assumptions – derivative notes:	December 31, 2016
Risk free interest rate		0.44	%
Expected term (years)		0.0-0.27
Expected volatility		273.97	%
Expected dividends		0	%