Quarterly report pursuant to Section 13 or 15(d)

NOTES PAYABLE

v3.5.0.2
NOTES PAYABLE
6 Months Ended
Sep. 30, 2016
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block]
7.
NOTES PAYABLE
 
Demand Notes payable
 
The Company has outstanding notes payable (“Notes”) of $325,993, acquired from IMT on April 20, 2016. Loan amounts represented by one such Note is owed to a director of the Company for $148,974 at September 30, 2016. On March 1, 2016, the Company executed amendments to the Notes to accrue interest at a rate of prime, as reported by the Wall Street Journal, of 3.50% at the date of amendment and to defer the demand feature until the earlier of December 31, 2017 or the date when the Company raises new capital in excess of $15 million in cash.
 
Balance, March 31, 2016
 
$
-
 
Acquisition of IMT (Note 3)
 
 
324,894
 
Accrued interest
 
 
1,099
 
Balance, September 30, 2016
 
$
325,993
 
 
Interest expense incurred on the Notes totaled $1,138 and $4,463 for the three and six month period ended September 30, 2016, which are included in accrued liabilities.
 
Promissory Notes payable
 
In February 2014, the Company borrowed $200,000 from an existing investor under the terms of the secured promissory note (“Promissory Note”). The Promissory Note bears interest at a simple interest rate equal to 10% per annum and interest is payable quarterly. The Promissory Note, which matured in March 2016 and then September 2016, was further extended and now matures March 2017, may be prepaid at any time, and is secured by substantially all the assets of one of the Company’s subsidiaries. Interest expense incurred on the Promissory Note totaled $5,042 and $8,932 for the three and six month periods ended September 30, 2016.
 
Balance, March 31, 2016
 
$
-
 
Acquisition of IMT (Note 3)
 
 
217,808
 
Accrued interest
 
 
8,932
 
Balance, September 30, 2016
 
$
226,740