Annual report pursuant to Section 13 and 15(d)

Convertible Note Payable (Tables)

v2.4.1.9
Convertible Note Payable (Tables)
12 Months Ended
Dec. 31, 2014
Schedule of Short Term Convertible Notes

    2014     2013  
Short term convertible notes                
Various Notes payable   $ 550,000     $ 550,000  
Debt discount     (166,668 )     (219,979 )
Typenex note payable     342,000     $ -  
Vista note payable     2,184,000       -  
Redwood note payable     132,000       -  
    $ 3,041,332     $ 330,021  

 

Derivative and warrant liability            
Typenex   $ 893,347     $ -  
Vista     195,506       -  
Redwood     850,439       -  
    $ 1,939,292     $ -  

Schedule of Investors Notes Receivable

 

Investor Notes Receivable            
    2014     2013  
Typenex   $ 255,260     $ -  
Redwood     1,920,000       -  
Total Investor Notes Receivable   $ 2,175,260     $ -  

Schedule of Conversion Eligible Tranches

The note is separated into three Conversion Eligible Tranches (discussed under Lender Conversion below) of the following amounts:

 

Initial Tranche   $ 275,000  
First Subsequent Tranche     137,500  
Second Subsequent Tranche     137,500  
    $ 550,000  

 

The note is separated into three Conversion Eligible Tranches (discussed under Lender Conversion below) of the following amounts:

 

Initial Consideration   $ 100,000  
Subsequent Consideration     100,000  
    $ 200,000  

Schedule of Investor Warrants

The Purchase Price allocated to each Investor Warrant is at inception was:

 

Investor Warrant #1:   $ 275,000  
Investor Warrant #2:     137,500  
Investor Warrant #3:     137,500  
    $ 550,000  

Schedule of Debt

Accordingly, the initial carrying amount of the note is approximately $39,000, derived as follows:

 

Face amount of note   $ 550,000  
Original issuance discount     (50,000 )
Allocation to Investor Warrants     (182,000 )
Allocated to embedded derivatives     (279,000 )
    $ 39,000  

Schedule of Derivative and Warrant Liability

Accordingly, the carrying amount of the note at inception is approximately $100,000, derived as follows:

 

Face amount of note   $ 100,000  
Allocated to embedded derivatives     (0 )
    $ 100,000  

Schedule of Fair Value Hierarchy of Outstanding Derivative Liability

The Company did not have any derivatives valued using Level 1 and Level 2 inputs as of December 31, 2014. The fair values and corresponding classifications under the appropriate levels of the fair value hierarchy of the outstanding derivative liability recorded as recurring liabilities in the consolidated balance sheet consisted of the following:

 

    Level     December 31, 2014     December 31, 2013  
                         
Included in current liabilities: Derivative Liability     3     $ 1,045,945     $ 0  

 

            Valuation       Unobservable  
    December 31, 2014       Technique       Input  
                       
Included in current liabilities:                        
Derivative Liability   $ 1,045,945       Monte Carlo Pricing Model       Prevailing interest rates Company’s stock volatility Expected term  

Derivative And Warrant Liability [Member]  
Schedule of Derivative and Warrant Liability

At December 31, 2014, the carrying value of the note is as follows:

 

Face amount of note   $ 132,000  
Derivative and warrant liability     195,506  
    $ 327,506  

 

At December 31, 2014, the carrying value of the note is as follows:

 

Face amount of note   $ 2,184,000  
Derivative and warrant liability     850,439  
    $ 3,034,439  

Investors Warrants [Member]  
Schedule of Debt

At December 31, 2014, the carrying value of the note is as follows:

 

Face amount of note   $ 342,000  
Derivative and warrant liability     893,347  
    $ 1,235,347