Annual report pursuant to Section 13 and 15(d)

Note 13 - Notes Payable

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Note 13 - Notes Payable
12 Months Ended
Dec. 31, 2015
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block]
Note 13
– Notes Payable

In 2013 and prior, the Company issued $580,000 of notes payable to various individuals for business operations and growth opportunities.

Prior to 2013, the Company executed a note for $94,060.  The note matures in January 2021 and bears no interest.  The monthly fixed principal payment is $550. The note is secured by all assets of the Company. The total outstanding balance as of December 31, 2015 and December 2014 is $53,420 and $60,020, respectively.

Future minimum debt repayments at December 31, 2015 are as follows:

2016
 
$
6,600
 
2017
   
6,600
 
2018
   
6,600
 
2019
   
6,600
 
2020
   
6,600
 
Thereafter
   
20,420
 
Total
 
$
53,420
 

On May 27, 2014, the Company sold a $20,000 promissory note maturing in August 2014.  The note bore interest at 1% per month with interest payable monthly.  The promissory note was subsequently converted into equity.

During May and June of 2014, certain note holders converted their promissory notes into common stock.  In total, $345,000 of promissory notes was converted into 300,001 shares of Common Stock.  In connection with the note conversions, the Company recorded a loss on debt extinguishment of $57,502 in the accompanying Consolidated Statements of Operations.

In June 2014, the Company repaid the remaining $255,000 of outstanding notes payable issued in 2013 and prior that had not converted into equity.