| Note 8. NOTE PAYABLE |
Notes payable
is as follows:
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March 31, |
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December 31, |
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2014 |
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2013 |
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| Unsecured promissory demand
note dated May 7, 2012, issued to an accredited investor, bearing interest at a rate of 4% per annum. Holder may elect to
convert into common stock at $0.75 per share. |
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5,000 |
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5,000 |
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| Promissory note dated July 26, 2013,
issued to an accredited investor, maturing July 15, 2014, bearing interest at a rate of 12% per annum. Principal and interest
may be converted into common stock based on the average trading price of the ten days prior to maturity at the holders
option. |
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150,000 |
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150,000 |
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| Unsecured promissory demand notes,
issued to an accredited investor, bearing interest at a rate of 4% per annum. Holder may elect to convert into common stock
at $0.75 per share. |
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109,306 |
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109,306 |
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| Unsecured promissory demand note, issued
to an accredited investor, bearing interest at a rate of 15% per annum. |
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3,474 |
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3,474 |
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| Senior secured promissory
notes dated July 26, 2013, issued to accredited investors, maturing April 26, 2013, bearing interest at a rate of
6% per annum. Principal and interest was be converted into common stock based on the average trading price of the ten
days prior to maturity at the holders option during the quarter ended March 31, 2014. |
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- |
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250,000 |
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|
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| Senior secured promissory notes dated
October 10, 2013, issued to accredited investors, maturing April 5, 2014, bearing interest at a rate of 6% per annum.
Principal and interest was be converted into common stock based on the average trading price of the ten days prior to
maturity at the holders option during the quarter ended March 31, 2014. |
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- |
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54,900 |
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| Senior secured promissory
note dated October 10, 2013, issued to an accredited investor, maturing May 22, 2014, bearing interest at a rate of 6% per
annum. Principal and interest may be converted into common stock based on the average trading price of the ten days prior
to maturity at the holders option. $25,000 was converted during the quarter ended March 31, 2014. |
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25,000 |
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50,000 |
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|
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| Senior secured promissory notes dated
November 22, 2013, issued to accredited investors, maturing May 15, 2014, bearing interest at a rate of 6% per annum. Principal
and interest may be converted into common stock based on the average trading price of the ten days prior to maturity at the
holders option. $175,000 was converted during the quarter ended March 31, 2014. $100,000 principal plus accrued interest
was paid during the quarter ended March 31, 2014. |
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- |
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275,000 |
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|
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| Senior secured promissory notes dated
December 5, 2013, issued to accredited investors, maturing July 1, 2014, bearing interest at a rate of 12% per annum. |
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300,000 |
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300,000 |
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| Demand promissory notes
dated January 7, 2014, issued to an accredited investor, maturing August 7, 2014, bearing interest at a rate of 12% per annum. |
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100,000 |
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- |
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| 5% Original issue
discount senior secured convertible promissory note dated February 5, 2014, issued to accredited investors, bearing interest
at a rate of 12% per annum. The fixed conversion price in effect shall be 90% of the 20 day VWAP of Company Common Stock prior
to February 5th, 2014. |
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842,105 |
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- |
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| 5% Original issue
discount senior secured convertible promissory note dated March 5, 2014, issued to accredited investors, bearing interest
at a rate of 12% per annum. The fixed conversion price in effect shall be 90% of the 20 day VWAP of Company Common Stock prior
to February 5th, 2014. |
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842,105 |
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- |
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$ |
2,376,990 |
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$ |
1,197,680 |
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The senior
secured promissory notes are secured by shares of common stock. There is accrued interest of $62,241 as of March 31, 2014.
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