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NOTE 7 - NOTES PAYABLE
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9 Months Ended |
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Sep. 30, 2014
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| Stockholders' Equity Note [Abstract] | |
| NOTE 7 - NOTES PAYABLE |
NOTE 7 - NOTES PAYABLE
As of September 30, 2014, the Company issued an aggregate of $2,000,000 of Unsecured Convertible Notes (the “Notes”). The Notes carry a 6% annual interest rate and are payable on August 31, 2016. Pursuant to the Notes, the holders of the Notes have an option to convert the then outstanding principal amount of the Notes into the common stock of the Company at a price of 75% of the sale price of the Company’s next financing. Each note holder is also entitled to receive a number of warrants ("Warrants") equal to 20% of the amount of the registrant's common stock into which the Notes convert. Warrants will only be issuable upon conversion of a Note. There were no derivative liabilities accounted for due to the uncertainty of future offering.
During the three and nine months ended September 30, 2014, the Company recorded interest expense of $24,016 and $25,315, respectively, related to the Notes. |
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- Details
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- Definition
The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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