|9 Months Ended|
Sep. 30, 2016
|Debt Disclosure [Abstract]|
Note 5 - Notes Payable
During the three months ended September 30, 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 annum.
The Company issued warrants to purchase 500,000 shares of common stock in consideration of the loans for $50,000. The warrants have an exercise price of $0.02 per share and expire in 10 years. The Company determined that the fair value of the warrants was $16,691 and included it as a financing cost in interest expense for the period ended September 30, 2016.
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