Quarterly report pursuant to Section 13 or 15(d)

NOTES PAYABLE

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NOTES PAYABLE
3 Months Ended
Jun. 30, 2016
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block]
7.
NOTES PAYABLE
 
Demand Notes payable
 
The Company has outstanding notes payable (“Notes”) of $328,840, acquired from IMT, loan amounts represented by one such Note which is owed to a director of the Company for $148,974 at June 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.
 
Interest expense incurred on the Notes totalled $3,325 for the period ended June 30, 2016.
 
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, was extended and now matures in September 2016, 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 Note totalled $3,890 for the period ended June 30, 2016.
 
Subsequent to June 30, 2016, the Promissory Note was extended to March 2017 under the same terms and conditions stated above.