Quarterly report pursuant to Section 13 or 15(d)

CONVERTIBLE DEBT OBLIGATIONS

v2.4.0.8
CONVERTIBLE DEBT OBLIGATIONS
 9 Months Ended
Sep. 30, 2014
Convertible Debt [Abstract]  
Convertible Debt Disclosure [Text Block]
8.
CONVERTIBLE DEBT OBLIGATIONS
 
Convertible notes consist of the following:
 
 
 
September 30, 2014
 
December 31, 2013
 
 
 
Principal
 
Interest [1]
 
Total
 
Principal
 
Interest [1]
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8% Convertible Notes
 
$
287,500
 
$
179,533
 
$
467,033
 
$
509,250
 
$
195,723
 
$
704,973
 
12.5% Convertible Notes
 
 
50,000
 
 
23,191
 
 
73,191
 
 
140,500
 
 
64,493
 
 
204,993
 
10% Convertible Notes
 
 
-
 
 
5,108
 
 
5,108
 
 
1,229,653
 
 
254,646
 
 
1,484,299
 
Total
 
$
337,500
 
$
207,832
 
$
545,332
 
$
1,879,403
 
$
514,862
 
$
2,394,265
 
 
[1] Accrued interest is included as a component of accrued expenses on the condensed consolidated balance sheets.
 
During the nine months ended September 30, 2014, principal plus interest aggregating $1,067,171 was repaid in cash, and principal plus interest aggregating $876,908 was converted to 476,792 shares of Series A Preferred. The fair value of the equity securities issued exceeded the value of the extinguished debt (not converted pursuant to their original terms) by $220,128, which was recorded as a loss on extinguishment.
 
During the nine months ended September 30, 2014 and 2013, the Company accrued $95,146 and $195,168 of interest expense, respectively, in connection with its convertible notes.