The convertible notes outstanding as of August 31 are summarized below:
2013 2012
Convertible promissory note, dated April 15, 2013, original face value of: $130,000, maturing April 15, 2014, 9.9% interest. Conversion price shall be equal to 60% (40% discount) of the lowest trading price of any day during the 10 consecutive trading days prior to the date on which Holder elects to convert all or part of the note. $ 130,000 (They want this pps as low as possible for conversion during this time period) $ —
Convertible promissory note, dated May 24, 2013, original face value of: $50,000, maturing May 21, 2015, 6.0% interest. Master agreement for total funding of $350,000, of which $50,000 has been received to date, with an additional four future funding installments of $75,000 at a date to be determined. Conversion price shall be equal to 70% (30% discount) of the lowest trading price of any day during the 10 consecutive trading days prior to the date on which Holder elects to convert all or part of the note. $ 50,000 $ —
Convertible promissory note, dated June 13, 2013, original face value of: $33,000, maturing June 13, 2014, 12.0% interest. Master agreement for total funding of $335,000, of which $55,000 has been received to date. Original issue discount, in the amount of $35,000 has been charged at origination per agreement. Conversion price shall be equal to 60% (40% discount) of the lowest trading price of any day during the 25 consecutive trading days prior to the date on which Holder elects to convert all or part of the note. $ 90,000 $ —
Convertible promissory note, dated June 21, 2013, original face value of: $33,000, maturing March 21, 2015, 8.0% interest. Master agreement for total funding of $557,500, of which $100,000 has been received to date, with an additional four future funding installments of $100,000 at a date to be determined. Additionally, an original issue discount, in the amount of $57,500 has been charged at origination. Conversion price shall be equal to 105% of the average daily closing bid prices for 15 trading days. $ 157,500 $ —
Convertible promissory note, dated August 1, 2013, original face value of: [b[color=red]]$166,000, maturing August 1, 2014[/color], 12% interest. Conversion Price” shall be equal to sixty percent (60%) of the lowest trading price of any day during the 10 consecutive trading days prior to the date of conversion. $ 166,000 $ —
Convertible promissory note, dated August 5, 2013, original face value of: $27,500, maturing February 5, 2014, 10% interest. Conversion price shall be equal to 55% (45% discount) of the average of the three lowest trades on the previous 10 trading days prior to the date of conversion, with a maximum conversion price equal to the that price that would be obtained if the conversion were to be made on the date that the note was executed. $ 27,500 —
Total debt $ 621,000 $ —
Less: unexpired debt discounts and deferred finance costs 515,289 —
Total $ 105,711 $ —
