I see a ton of debt financing along with penalties. During the period ended September 30, 2015 we accrued $163,800 of penalty expense, we accrued $5,897 of interest on convertible notes issued from 2014 and converted in early 2015, we paid $3,450 of interest on notes payable,we recorded $24,794 accretion of debt discount related to financing costs on notes payable issued during 2014, we recorded $15,798 accretion of debt discount related to shares or warrants issued related to financing costs on notes issued during 2015, we recorded an additional $23, 333 accretion of original issue discount related to convertible notes issued during 2015 and $60,400 of additional interest related to the discount stock price on convertible notes issued during 2014 and converted in early 2015. These amounts are recorded as part of our interest expense reported for the nine months then ended. As of September 30, 2015, our outstanding notes payable balance was $401,410 and $74,000 in convertible note agreements net of debt discount and $109,537 in derivate liability related to convertible note agreements, of which $48,085 are in default as of September 30, 2015. The individual notes in default carry daily interest penalties between $100 and $500. Balance of notes payable at December 31, 2014 totaled $266,336 and $67,500 of convertible debt, net of discount, respectively.
Transactions relating to short-term financing are as followings:
On February 9, 2015, the Company entered into a short-term commercial financing agreement for furthering the housing and diamond projects in the amount of $30,000 due and payable in full in one year. As of September 30, 2015, we have repaid $3,000 of this note.
On February 26, 2015, the Company entered into a short-term commercial financing agreement for the furtherance of diamond parcel shipments in the amount of $10,080 due and payable in one year.
On March 26, 2015, the Company entered into a short-term commercial financing agreement for the furtherance of work with Global Builders Group on housing projects within Africa in the amount of $25,000 due and payable in 180 days with interest of 15% annualized. Additionally, as an inducement to enter into the agreement, the Company issued 2,000,000 restricted shares of our common stock and 2,000,000 one year warrants at an exercise price of $0.0025. The Company allocated proceeds of $4,400 to the stock issued and $2,936 to the warrants issued as a discount to the principal amount due under the note. For the nine months ended September 30, 2015, the Company recognized $7,336 of accretion of interest related to this discount.
On April 30, 2015, the Company entered into a short-term commercial financing agreement in the amount of $10,000 for the funding of the second diamond delivery parcel due and payable in 60 days. The agreement carries no interest but the note holder is entitled to a prorated share of the net profit of the diamond parcel after applicable expenses related directly to the acquisition and disposition of the parcel. Additionally, as an inducement to enter into the agreement, the Company issued 1,500,000 restricted shares of our common stock. The Company allocated proceeds of $3,000 to the stock issued as discount to the agreement but which was fully accreted during the period ended June 30, 2015 due to the maturity of the note on that date. This note was paid on July 1, 2015.
On May 2, 2015, the Company entered into a demand note payable that carries no interest and no due date for acquisition and disposition of the second diamond parcel in the amount of $10,000.
On May 11, 2015, the Company entered into a short-term commercial financing agreement in the amount of $10,000 for the funding of travel costs between operations in Sierra Leone due and payable in the earlier of 90 days or completion of the second diamond parcel shipment. The agreement carries no interest. Additionally, as an inducement to enter into the agreement, the Company issued 1,500,000 restricted shares of our common stock and 1,500,000 one year warrants at an exercise price of $0.0015. The Company allocated proceeds of $2,850 to the stock issued and $2,062 to the warrants issued as a discount to the principal amount due under the note. For the nine months ended September 30, 2015, the Company recognized $4,912 of accretion of interest related to this discount. This note was repaid in full on September 21, 2015.
On August 17, 2015, the Company entered into a short-term commercial financing agreement in the amount of $5,000 for the funding certain mineral licenses in Sierra Leone due and payable in the earlier of 30 days or completion of the next diamond parcel shipment. The agreement carries no interest. Additionally, as an inducement to enter into the agreement, the Company issued 500,000 restricted shares of our common stock. The Company allocated proceeds of $9,450 to the debt and $550 to the stock issued as a discount to the principal amount due under the note. For the nine months ended September 30, 2015, the Company recognized $550 of accretion of interest related to this discount. This note was repaid in full on September 21, 2015.
They have about $500 in their account as of this report. Looks like the shoestring operation continues. Not sure why their expenses are as high as they are if they farm out all the work to others and split any diamonds sales?
