|
NOTE 5: DEBT
|
9 Months Ended |
|---|---|
|
Sep. 30, 2014
|
|
| Disclosure Text Block [Abstract] | |
| Short-term Debt [Text Block] |
NOTE 5: DEBT
Convertible Debt
As of December 31, 2013, the Company had outstanding convertible notes payable of $1,084,382, net of unamortized discounts of $374,091. Through the nine months ended September 30, 2014, the company borrowed an aggregate of $1,074,500, net of original issue discounts of $302,190, under convertible notes payable and issued an aggregate of 8,362,339 common shares for the conversion of $1,430,539 in convertible debt and accrued interest. Through the nine months to September, the company repaid two convertible notes totaling $79,250. As of September 30, 2014, the Company had outstanding convertible notes payable of $904,463, net of unamortized discounts of $458,409.The outstanding convertible notes of the Company are unsecured, bear interest between 8% and 12% per annum, mature between October 2014 and March 2015 and are convertible at fixed rates between $0.735 and $1.05 per share or at variable rates
between 58% and 75% of the quoted market price of the Company’s common stock. All notes that were convertible during the nine months ended September 30, 2014 were accounted for as derivative liabilities (see Note 6). Aggregate amortization of the debt discounts on non-related party convertible debt for the nine months ended September 30, 2014 was $1,265,387.
Nonconvertible Debt
As of December 31, 2013, the Company had outstanding notes payable to third parties of $404,890, net of unamortized discounts of $28,298. During the nine months ended September 30, 2014, the Company borrowed an aggregate of $15,527 under notes payable to third parties and made aggregate cash payments of $35,530 on third party notes payable. As of September 30, 2014, the Company had outstanding notes payable to third parties of $413,185, net of unamortized discounts of $0. The notes payable of the Company are unsecured, bear no interest and are due on demand. Aggregate amortization of the debt discounts on third party notes payable for the nine months ended September 30, 2014 was $28,298.
|