NOTE 9 - SUBSEQUENT EVENTS

 

Management has evaluated subsequent events through January 13, 2016, which is the date the consolidated financial statements were issued.

 

Notes Payable Shareholders

 

In November 2015, the Company issued a Promissory Note to a shareholder and a director in the amount of $50,000. The note bears interest at 8% per annum and matures December 31, 2016.

 

Common stock issued for conversion of preferred stock

 

In November 2015, two shareholders converted 7,280 shares of Series C Convertible Preferred stock into 36,400 shares of common stock.

 

Common Stock Issued for Cash

 

In December 2015, a shareholder purchased 250,000 restricted shares of common stock for $5,000 in cash.

 

Convertible Promissory Notes

 

In November 2015, a convertible note holder converted $10,000 of principal into 847,458 shares of common stock.

 

In November 2015, the Company repaid the principal balance due of $33,000 on a Convertible Promissory Note along with accrued interest of $14,974.69.

 

In December 2015, the Company entered into a Convertible Promissory Note with a private investor in connection with the issuance of a 8% convertible promissory note in the amount of $25,000. The note matures on December 6, 2017, and is convertible into shares of the Company's common stock at a variable conversion price (55% multiplied by the market price) that is equal to the lowest trade price in the 25 trading days previous to the conversion. The Note also contains prepayment option whereby the Note bears no interest for the first 90 days if repaid in full plus a 10% Original Issue Discount fee. After 90 days the Note incurs a 12% one-time interest charge.  In the event of default before the maturity dates, the payment is immediately due, in the amount of 150% of the outstanding unpaid principal, along with interest and any penalties.