Quarterly report pursuant to Section 13 or 15(d)

NOTES PAYABLE

v3.5.0.2
NOTES PAYABLE
6 Months Ended
Sep. 30, 2016
NOTES PAYABLE [Text Block]

NOTE 12 – NOTES PAYABLE

On August 19, 2015, the Company entered into a securities purchase agreement pursuant to which the Company issued a secured term note of our company in the aggregate principal amount of $240,000, together with 20,000 shares of our common stock, in consideration for $200,000. The secured term note bears requires monthly payments of $20,000 per month, along with a final payment due on August 20, 2016.

On November 2, 2015 the Company issued a promissory note to a lender in the amount of $125,000. The note requires weekly payments of $2,451 plus interest. The final payment is due on November 19, 2016.

Between June 10, 2016 and June 20, 2016, the Company entered into loan agreements with various lenders pursuant to which the Company issued convertible promissory notes of our company in the aggregate principal amount of $260,000, The convertible promissory note bears interest at the rate of 10% per annum and matures on June 10, 2017 and is convertible into common shares at $1.00 per share. The Company evaluated this transaction under ASC 470-20-30 “Debt – liability and equity component” determine that a Debt Discount of $240,100 was provided and will be amortized over the 1 -year term of the note. As of September 30, 2016, the unamortized debt discount was $160,067.

On September 20, 2016 the Company agreed to a $1,000,000 loan facility which also included a conversion right of principal and/or accrued interest the convertible note bears interest at the rate of 10% per annum and matures on September 20, 2018 and is convertible into common shares at $1.00 per share. As of September 30, 2016 the Company had drawn $250,000 of the facility. The Company evaluated this transaction under ASC 470-20-30 “Debt – liability and equity component” determine that a Debt Discount of $100,000 was provided and will be amortized over the 2 -year term of the note. As of September 30, 2016, the unamortized debt discount was $95,833.