Quarterly report pursuant to Section 13 or 15(d)

NOTES PAYABLE

v3.7.0.1
NOTES PAYABLE
3 Months Ended
Jun. 30, 2017
NOTES PAYABLE [Text Block]

NOTE 10 – NOTES PAYABLE

On September 20, 2016, we entered into a loan facility agreement (the “Loan Agreement”) with Turnstone Capital Inc. (the “Lender”), whereby the Lender agreed to make available to our company a loan in the aggregate principal amount of $1,500,000 (the “Loan Amount”). Pursuant to the Loan Agreement, the Lender agreed to make one or more advances of the Loan Amount to our company as requested from time to time by our company in an amount to be agreed upon by our company and the Lender (each, an “Advance”).

During the year ended March 31, 2017, the lender made advances totaling $1,000,000. This amount together with accrued interest of $30,000 was converted to 1,030,000 common shares on March 31, 2017.

In June, 2017, Turnstone advanced the remaining $500,000 available under the Loan Agreement. The Company evaluated this transaction under ASC 470-20-30 “Debt – liability and equity component” and determined that a Debt Discount of $295,000 was provided and will be amortized over the remaining term of the Loan Agreement.