Note 6 - Notes Payable and Completed
During December 2015, the company issued 2 Convertible Notes.
1. CONVERTED and completed. A note to ADAR Bays was for $50,000 and was completely converted August 31, 2016. It was a twelve month note at 8% interest.
2. CONVERTED and completed. The second Note was with EMA Financial Inc. It was a twelve month note at 10% interest and it completely converted before September 31, 2016. The company had determined that the EMA note had an embedded derivative that was shown on the 2015 Balance Sheet.
During January and during September to December 2016, the company issued 7 Convertible Notes.
1. CONVERTED and completed. This Note, issued in January, 2016 was a $45,000 note to Fourth Man LLC. which has completely converted.
2. CONVERTED and completed. A second note to ADAR Bays for $50,000 was a back-end note and completely converted during September, 2016.
3. A third note to ADAR Bays for $54,000 is convertible after March 22, 2017. It is a twelve month note at 8% interest.
4. A fourth note to ADAR Bays for $230,000 is convertible after April 13, 2017. It is a twelve month note at 12% interest but is secured by already issued shares belonging to John Sprovieri, the CEO of the company.
5. A note to JSJ Investments for $84,500 is convertible after October 7, 2017. It is a twelve month note at 12% interest.
6. A note to Crown Bridge Partners, LLC for $43,000 is convertible after October 17, 2017. It is a twelve month note at 10% interest.
7. A note to Fourth Man, LLC for $45,000 and is convertible after July 26, 2017. It is a nine month note at 10% interest
As a result of these convertible notes, we recognized and imbedded derivative liability, as of December 31, 2016 and 2015. Our derivative liability was $117,759 and $39,818
