Debt

9 Months Ended

Dec. 31, 2012

4.	Convertible Debt:

On September 15, 2008 we issued a $23,106 convertible promissory note. The note bears interest at 8% per annum until paid or converted. The note is convertible at the option of the holder at any time and from time to time into our common stock at a conversion price of $0.00924 per share and matured on September 15, 2010. The note is currently in default.

On November 17, 2012 we issued a $28,000 convertible promissory note for the settlement of accounts payable. The note bears interest at 8% per annum until paid or converted. The note is convertible at the option of the holder at any time and from time to time into our common stock at a conversion rate of $0.002 and matures on March 17, 2013. At issuance, the note was determined to be discounted by the principal of the note of $28,000 due to a beneficial conversion feature. At December 31, 2012, the unamortized discount on the convertible note was $17,500. During the quarter ended December 31, 2012, $10,500 was amortized and recognized as debt discount expense.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details

Locan, Inc. 10-Q