Annual report pursuant to Section 13 and 15(d)

Notes Payable

v3.7.0.1
Notes Payable
12 Months Ended
Dec. 31, 2016
Debt Disclosure [Abstract]  
Notes Payable

Note 5 - Notes Payable

 

During the year ended December 31, 2016, a third-party shareholder loaned the Company $50,000 for working capital purposes. The $50,000 is due on demand, unsecured, and interest is at 4% per year. In addition, the note holder received warrants to purchase 500,000 shares of common stock. The warrants are exercisable at $0.02 per share, have a term of three years, and were 100% vested upon issuance. As a result, the Company recorded a note discount of $16,691 to account for the relative fair value of the warrants. As the note payable is due on demand, the note discount was expensed immediately.

 

During the year ended December 31, 2016, the Company issued additional warrants to purchase 500,000 shares of common stock to the note holder. The warrants are exercisable at $0.02 per share, have a term of one year, and were 100% vested upon issuance. The Company determined that the fair value of the warrants was $13,363 which was expensed immediately.