• Filing Date: 2013-04-12
  • Form Type: 10-K
  • Description: Annual report
v2.4.0.6
The Following Is A Summary Of Amounts Due To Unrelated Parties (Tables)
12 Months Ended
Dec. 31, 2012
The Following Is A Summary Of Amounts Due To Unrelated Parties  
Summary of amounts due to unrelated parties, including accrued interest (Table)

The following is a summary of amounts due to unrelated parties, including accrued interest separately recorded, as of December 31, 2011:

 

 

Note Payable

Terms of the agreement

 

Principal

Amount

Discount

Principal Net

of Discount

Accrued

Interest

June 21, 2011

Note

Convertible promissory note in the principal

amount of $560,000; (i) interest accrues at 12%

per annum; (ii) maturity date of June 21, 2015;

(iii) upon closing the Company issued to the

lender 100,000 shares of Common Stock valued

at $60,000 and two warrants to purchase 250,000

shares of common stock each, with exercise prices

of $0.50 $1.00; (iv) the debt is convertible at a 30%

discount on the fair market value of the stock.  

The Company measured the fair value of the

warrants and the beneficial conversion feature

of the note and recorded a discount against

the principal of the note. (see Note 6 "Significant

Transaction - Forbearance Agreement")

 

$560,000

$(284,959)

$275,041

$51,367

 

 

 

 

 

 

 

July 13, August

17, & October 7

2011 Convertible

Notes

Three notes with the same terms to the same

unrelated party in the amounts of $40,000,

$50,000 and $30,000 respectively. (i) interest

accrues at 8% per annum; (ii) maturity date

nine months from the date of issuance; (iii)

convertible at a price per share equal to 50%

of the average of the three lowest closing

prices of the Company’s Common stock for

the 10 day trading period before conversion

 

120,000

(61,811)

58,189

3,894

 

 

 

 

 

 

 

Total

 

 

$680,000

$(346,770)

$333,230

$55,261

 

The Following Is A Summary Of Amounts Due To Unrelated Parties

The following is a summary of amounts due to unrelated parties, including accrued interest separately recorded, as of December 31, 2012:

 

Note Payable

Terms of the agreement

Principal

Amount

Discount

Principal Net

of Discount

Accrued

Interest

March 4, 2011

Note Payable

$223,500 note payable; (i) interest accrues at 13% per

annum; (ii) maturity date of September 4, 2011; (iii) $

20,000 fee due at maturity date with a $1,000 per day

fee for each day the principal and interest is late.  This

note is currently the subject of litigation  (see Note 9

"Legal Proceedings”)

$223,500

-

$223,500

$29,539

 

 

 

 

 

 

Purchase Order

Financing

Agreement

$50,000 note payable; (i) interest accrues at 10% per

annum; (ii) proceeds used to purchase inventory;

(iii) lender will be reimbursed $25 per gram as the

inventory is sold.  As of March 31, 2012 the lender

is due $8,775 of sales proceeds.

43,847

-

43,847

536

 

 

 

 

 

 

Third Quarter

2012 Secured

Subordinated

Promissory

Notes

Seventeen notes (including two with related parties

mentioned above) in the original aggregate principal

amount of $1,055,000; (i) 5% interest due on maturity

date; (ii) maturity date of October 12, 2012; (iii) after

the maturity date interest shall accrue at 18% per

annum and the company shall pay to the note

holders on a pro rata basis, an amount equal to

twenty percent of the sales proceeds received

by the Company and its subsidiary, WCI, from

the sale of surgical powders, until such time as

the note amounts have been paid in full.  As of

March 31, 2013 fifteen of these notes remain

due, of which thirteen are with unrelated parties

in the aggregate principal amount of $610,000.

860,000

-

860,000

65,149

 

 

 

 

 

 

September 19,

2012 Promissory

Note

$20,000 note payable; (i) interest accrues at 10% per

annum; (ii) maturity date of December 31, 2012; (iii)

warrant to purchase 20,000 shares of common stock

at an exercise price of $0.15 per share to be issued

upon default.  As of December 31, 2012 this note was

not paid and the 20,000 warrants were issued to the

note holder.  As of March 31, 2013 the $20,000 balance

is past due.

20,000

-

20,000

570

 

 

 

 

 

 

September 28,

2012 Promissory

Note

$51,300 note payable (i) interest accrues at 10% per

annum; (ii) maturity date of December 31, 2012; (iii)

default interest rate of 15 per annum.  As of March 31,

2013 this note is past due.

51,300

-

51,300

1,357

 

 

 

 

 

 

October 1,

2012 Promissory

Note

$75,000 note payable;  (i) interest accrues at 9% per

annum; (ii) the principal is due and payable as follows:

(a) $10,000 on October 31; and (b) $15,000 each on

November 31, 2012 December 31, 2012 and January

31, 2013 and (c) $20,000 on February 28, 2013 the

maturity date; (iii) the Company will issue to Lender

five-year warrant to purchase a total of 225,000 shares

of common Stock at a price of $0.15 per share. As of

March 31, 2013, the $15,000 payment due in January

has been paid, the due date of the final $20,000 payment

has been extended, and the balance is unpaid.

35,000

-

35,000

186

 

December 7,

2012 Promissory

Note

$75,000 note payable; (i) interest accrues at 10% per

annum; (ii) the principal is due and payable as follows:

(a) $10,000 each on January 15, 2013 and February 15,

2013; and (b) $15,000 on March 15, 2013 and (c)

$20,000 each on April 15, 2013 and May 15, 2013 the

maturity date; (iii) the Company will issue to Lender

five-year warrant to purchase a total of 350,000 shares

of common Stock at a price of $0.075 per share. As of

March 31, 2013 $35,000 in principal has been paid leaving

a balance of $40,000 due.

75,000

-

75,000

521

 

 

 

 

 

 

December 11,

2012 Promissory

Note

$50,000 note payable;  (i) interest accrues at 9% per

annum; (ii) the principal is due and payable as follows:

(a) $5,000 each on February 11, 2013 and March 11,

2013; and (b) $10,000 on April 11, 2013 and May 11, 2013

and (c) $20,000 on June 11, 2013 the maturity date; (iii)

the Company will issue to Lender five-year warrant to

purchase a total of 225,00 shares of common Stock at a

price of $0.09 per share. Additionally, the Company will

issue warrants to purchase 375,000 common shares at

$0.09 exercisable only upon an event of default. As of

March 31, 2013 $10,000 in principal has been paid leaving

a balance of $40,000 due.

50,000

-

50,000

263

 

 

 

 

 

 

June 21, 2011 Note

Convertible promissory note in the principal amount of

$560,000; (i) interest accrues at 12% per annum; (ii)

maturity date of June 21, 2015; (iii) upon closing the

Company issued to the lender 100,000 shares of

Common Stock valued at $60,000 and two warrants to

purchase 250,000 shares of common stock each,

with exercise prices of $0.50 $1.00; (iv) the debt is

convertible at a 30% discount on the fair market value

of the stock.  The Company measured the fair value of

the warrants and the beneficial conversion feature of the

note and recorded a discount against the principal

of the note. (see Note 6 "Significant Transaction -

Forbearance Agreement")

200,000

-

200,000

-

 

 

 

 

 

 

March 2012

Convertible

Notes

Three convertible notes in the principal amount of

$25,000, $50,000 and $100,000 respectively; (i) issued

 between March 3 and March 22, 2012; (ii) convertible

at $0.19 per share; (iii) interest accrues at 5% per annum;

(iv)  interest accrues at 9% per annum after the due dates

between March 31 and June 30, 2012. As of the date of

this filing these notes are past due.

175,000

-

175,000

11,281

 

 

Second Quarter

2012 Convertible

Notes

Two $25,000 notes; (i) issued on April 3 and April 23,

respectively; (ii) convertible at $0.19 per share; (iii)

interest accrues at 5% per annum; (iv) interest accrues

at 9% per annum after the due dates of April 30 and

June 30, 2012, respectively. On September 20, 2012,

222,420 shares of Common Stock were issued in

conversion of the April 23 note. As of the date of

this this filing the April 3 note is past due.

25,000

-

25,000

1,628

 

 

 

 

 

 

May 30,  

2012 Convertible

Note

Note in the principal amount of up to $275,000 including

an approximate original issue discount of 10%;

(i) maturity date one year from the effective date (ii)

convertible at the lesser of $0.19 or a 30% discount

on the fair market value of the Company's common stock;

(iv) one time interest charge of 5% will be applied if the

note is not repaid within the first 90 days.

73,645

(18,005)

55,640

2,750

 

 

 

 

 

 

Total

 

$1,832,292

$(18,005)

$1,814,287

$113,781