|3 Months Ended|
Mar. 31, 2016
|Notes Payable / Senior Secured Convertible Promissory Notes [Abstract]|
5. NOTES PAYABLE
On March 9, 2016 two investors assigned their 12% Promissory notes issued by the Company to a third investor. The third investor, on the same day, entered into two separate Exchange Agreements with the Company. The Exchange Agreements allow the third investor to exchange the 12% Promissory Notes for two separate 12% Senior Secured Convertible Promissory Notes in the principal amounts of $100,000 and $200,000 respectively.
During the quarter ended March 31, 2016, the Company made payment of $100,000 on outstanding notes payable, and $30,000 on accrued interest.
As of March 31, 2016, the Company had notes payable in the aggregate amount of $600,000 outstanding.
The Company is in default under the terms of all of its outstanding notes payables.
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://www.xbrl.org/2003/role/presentationRef