General form of registration statement for all companies including face-amount certificate companies

8. Notes Payable (December 2013 Note) (Tables)

v2.4.0.8
8. Notes Payable (December 2013 Note) (Tables)
 12 Months Ended
Dec. 31, 2013
Debt Disclosure [Abstract]  
Black-Scholes valuation for the warrants

As of June 27, 2012, the warrants were valued in the amount of $379,688, based on the Black-Scholes valuation using the following assumptions:

 

Risk-free interest rate 0.73%  
Expected life in years 5  
Dividend yield 0  
Expected volatility 63.65%  

 

As of June 27, 2012, the debt discount for the convertible feature of the debenture was valued in the amount of $269,284 using the Black-Scholes calculation with the following assumptions:

 

Risk-free interest rate 0.31%  
Expected life in years 2  
Dividend yield 0  
Expected volatility 60.01%  

 

On August 29, 2013, the date of assignment of the Debentures, a debt discount was recorded in the aggregate amount of $1,163,333 for the derivative value of the convertible feature of the Reissued Debenture upon the exchange date using the Black-Scholes calculation with the following assumptions:

 

Risk-free interest rate 0.14%  
Expected life in years .83  
Dividend yield 0  
Expected volatility 63.22%  
Notes payable and accrued interest
    12/31/2013     12/31/2012  
Notes Payable                
Debenture - $1,000,000 16% senior secured convertible (a)   $ –     $ 1,000,000  
Debt Discount - $1,000,000 16% senior secured convertible (a)     –       (485,147 )
Reissued Debenture - $1,163,333 16% senior secured convertible (a)     –       –  
Debt Discount - $1,163,333 16% senior secured convertible (a)     –       –  
Bridge Notes - 12% convertible (b)     –       –  
Total Notes Payable     –       514,853  
Less:  Current Portion     –       –  
Long Term Portion   $ –     $ 514,853  
                 
Accrued Interest                
Debenture - $1,000,000 16% senior secured convertible issued June 27,2012 (a)   $ –     $ 26,667  
2006 Debenture - $2,500,000 Terminated July 2009 (c)     –       19,049  
Bridge Notes - $530,000 12% convertible issued August 30, 2013 (b)     –       –  
Accrued Interest   $ –     $ 45,716