|12 Months Ended|
Dec. 31, 2016
|Debt Disclosure [Abstract]|
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.
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