Annual report pursuant to Section 13 and 15(d)

NOTES PAYABLE (Tables)

v3.8.0.1
NOTES PAYABLE (Tables)
12 Months Ended
Dec. 31, 2016
Notes Payable Tables  
Notes payable
    December 31,  
    2016     2015  
             
Promissory note dated July 25, 2014 issued to an accredited investor, which matured July 24, 2015 and bore interest at a rate of 12% per annum. The holder of the note extended the maturity to July 25, 2017. Principal and interest may be converted into common stock based on the average trading price of the ten days prior to maturity at the holder’s option. In November 2016, the holder of the note exchanged the note with another accredited investor.   $ –     $ 150,000  
Unsecured promissory demand notes issued to an accredited investor, which bears interest at a rate of 4% per annum. Holder may elect to convert into common stock at $0.75 per share. In 2015, the investor exchanged the notes from other accredited investors. In October 2016, the holder of the note converted some of the debt and accrued interest into common stock.     64,324       114,306  
Convertible promissory note dated April 7, 2015 issued to accredited investors, which matures October 7, 2016 and bears interest at a rate of 12% per annum. The conversion price in effect is $0.1303, subject to adjustment. The remaining balance of the note and accrued interest was converted into common stock in January 2016.     –       170,856  
5% original issue discount senior secured convertible promissory note dated May 5, 2014 issued to accredited investors, which matured November 5, 2015, and bore interest at a rate of 12% per annum. The fixed conversion price in effect was set at 90% of the 20-day volume weighted average price (“VWAP”) of our common stock on February 5, 2014, or $0.30753 per share. In 2015, the holder of the note converted some of the debt and accrued interest into common stock. The remaining balance of the note and accrued interest was converted into common stock in March 2016.     –       96,491  
Convertible promissory note dated May 13, 2015 issued to accredited investors, which matures November 13, 2016 and bears interest at a rate of 12% per annum. The conversion price in effect is $0.1211, subject to adjustment. The remaining balance of the note and accrued interest was converted into common stock in January 2016.     –       170,783  
Convertible promissory note dated December 14, 2015, issued to accredited investors, which matured December 13, 2016 and bears interest at a rate of 12% per annum. The holder of the note extended the maturity to December 13, 2017. The conversion price in effect is $0.1211, subject to adjustment.     500,000       214,927  
Senior convertible promissory note dated October 28, 2016, issued to accredited investors, which matures April 28, 2018 and bears interest at a rate of 1% per annum. The conversion price in effect is 90% of the average of the lowest three (3) VWAPs for the five (5) consecutive trading days prior to the conversion date.     102,582       –  
Senior convertible promissory note dated November 1, 2016, issued to accredited investors, which matures May 1, 2018 and bears interest at a rate of 12% per annum. The conversion price in effect is $0.35, subject to adjustment.     31,615       –  
Senior convertible promissory note dated December 16, 2016, issued to accredited investors, which matures June 16, 2018 and bears interest at a rate of 12% per annum. The conversion price in effect is $0.27, subject to adjustment.     1,220,155       –  
                 
Total Debt     1,918,676       917,363  
                 
Less Short-Term Portion     564,324       917,363  
                 
Long-Term Portion   $ 1,354,352     $ –  
Schedule of Extinguishment of Debt

    Year Ended December 31,  
    2016     2015     2014  
Fair market value of common stock issued upon conversion   $ 18,887,399     $ 1,493,659     $ -  
Principal amount of debt converted     (13,324,973 )     (900,000 )     -  
Accrued interest converted     (233,415 )     (108,000 )     -  
Fair value of derivative at conversion date     (10,361,100 )     (374,600 )     -  
Debt discount value at conversion date     10,414,902       508,385       -  
                         
Loss on Extinguishment of Debt   $ 5,382,813     $ 619,444     $ -