NOTE 5: DEBT |
3 Months Ended |
|---|---|
Mar. 31, 2015 | |
| Debt Disclosure [Abstract] | |
| Debt Disclosure [Text Block] |
NOTE 5: DEBT
Convertible Debt
As of December 31, 2014, the Company had outstanding convertible notes payable of $1,500,765, net of unamortized discounts of $246,615. During the three months ended March 31, 2015, the Company borrowed an aggregate of $111,000, net of original issue discounts of $7,000, under convertible notes payable and issued an aggregate of 1,270,325 common shares for the conversion of $50,000 of convertible debt. As of March 31, 2015, the Company had outstanding convertible notes payable of $1,623,635 net of unamortized discounts of $191,745. The outstanding convertible notes of the Company are unsecured, bear interest between 8% and 12% per annum, mature between April 2014 and September 2015 and are convertible at variable rates between 55% and 75% of the quoted market price of the Company’s common stock. All notes that were convertible during the three months ended March 31, 2015 were accounted for as derivative liabilities (see Note 6). Aggregate amortization of the debt discounts on convertible debt for the three months ended March 31, 2015 was $148,870.
Nonconvertible Debt
As of March 31, 2015, the Company had outstanding notes payable to former affiliates of the Company of $413,185, net of unamortized discount of $0. There are no activities on nonconvertible debt during the three months ended March 31, 2015. The notes payable of the Company are unsecured, bear no interest and are due on demand.
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