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