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Convertible Debt
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3 Months Ended |
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Mar. 31, 2015
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| Convertible Debt [Abstract] | |
| Convertible Debt |
Note 9 Convertible Debt
Related Party
On January 31, 2012 the Company entered into a $500,000 convertible promissory note with a director of the company. The note is convertible into the Companys common stock at $0.85 per share and carries interest at 10%. Interest is payable quarterly through the maturity date of January 31, 2015. DSC has accrued interest on this note totaling $158,219 and is in arrears on its interest payments. Subsequent to March 31, 2015, the maturity date was extended to May 6, 2016.
On February 28, 2013 the Company entered into a $100,000 convertible promissory note with a director of the company carries interest at 10%. Interest is payable quarterly through the maturity date of February 28, 2014. The Company issued 66,667 warrants valued at of $17,851 which was recorded as a discount to the convertible promissory note. The note is convertible into common stock at $0.15 per share. In 2014, the Company defaulted on this note and is subject to additional interest of 5% per annum as well as additional 10% warrants for each year in default. DSC has accrued interest on this note totaling $20,849. Subsequent to March 31, 2015, the maturity date was extended to May 6, 2016.
On August 9, 2013, the Company entered into a $100,000 convertible promissory note with the CEO of the Company. The convertible promissory note is convertible at $0.15 and carries interest at 10%. Interest is payable quarterly through the maturity date of April 30, 2014. The Company issued 66,667 warrants valued at $17,851 in connection with this agreement, which was recorded as a discount to the convertible promissory notes based on its relative fair value with an offset to additional paid in capital. In 2014, the Company defaulted on this note and is subject to additional interest of 5% per annum as well as the additional 10% warrants for each year in default. DSC has accrued interest on this note totaling $16,178. Subsequent to March 31, 2015, the maturity date was extended to May 6, 2016.
Effective January 1, 2015, the Company entered into $1,189,439 convertible promissory note with Charles Piluso, CEO of the company. This was issued to convert debt that is owed to him and 875 Merrick LLC. The note carries interest at 10%. Interest shall accrue and be payable in arrears on December 31, 2017. The note and all accrued and unpaid interest is convertible into the Companys common stock at $0.85 per share. DSC has accrued interest on this note totaling $29,329.
Effective January 1, 2015, the Company entered into a $121,924 convertible promissory note with Charles Piluso, CEO of the company. This was issued to convert debt that is owed to him and 875 Merrick LLC. The note carries interest of 10%. Interest shall accrue and be payable in arrears on December 31, 2016. The note and all accrued and unpaid interest is convertible into the Companys common stock at $0.15 per share. DSC has accrued interest on this note totaling $3,434.
On February 19, 2015 the Company entered into a $80,000 convertible promissory note with Charles Piluso, CEO of the Company and carries interest at 10%. Interest shall accrue and be payable in arrears on February 18, 2016. The note and all accrued and unpaid interest is convertible into the Companys common stock at $0.15 per share. DSC has accrued interest on this note totaling $1,973. |