Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTIES

v3.7.0.1
RELATED PARTIES
6 Months Ended
Jun. 30, 2017
Related Party Transactions [Abstract]  
RELATED PARTIES

NOTE 10 – RELATED PARTIES.


As discussed more fully in Note 8, section titled “Long Term Debt to Related Parties, net”, in August 2016, the Company issued a series of 12% convertible promissory notes that have conversion prices that create a beneficial conversion to a related party, who is our Chief Executive Officer.  These notes total $680,673 and $185,905 at June 30, 2017 and December 31, 2016, respectively and mature five years from issuance and are convertible at the option of the holder into shares of common stock at any time prior to maturity at a conversion price of $0.50 per share.  A beneficial conversion feature exists on the date a convertible note is issued when the fair value of the underlying common stock to which the note is convertible into is in excess of the face value of the note.  In accordance with this guidance, the intrinsic value of the beneficial conversion features is recorded as a debt discount with a corresponding amount to additional paid in capital.  The debt discount is amortized to interest over the five-year life of the note using the effective interest method.  The notes are reported net of their unamortized debt discount of $844,327 and $389,095 as of June 30, 2017 and December 31, 2016, respectively.