Convertible Notes Payable Disclosure	3 Months Ended
Mar. 31, 2014
Notes
Convertible Notes Payable Disclosure	NOTE 3. CONVERTIBLE NOTES PAYABLE In October, 2012, the Company entered into a 10% Contingently Convertible Promissory Note with Birr Marketing Group, Inc. for $20,000 with a due date of April 1, 2013. At March 31, 2014, the Company revalued the fair market value of the derivative liability and recorded a loss of ($242,356) on derivative liability. On April 16, 2013, the Company entered into a sixth Securities Purchase Agreement with Asher Enterprises, Inc. (“Asher”) a Delaware Corporation for an 8% contingently convertible promissory note with an aggregate principal amount of $42,500 which together with any unpaid accrued interest was due on December 21, 2013. · On January 2, 2014, Asher converted the remaining $6,500 of its outstanding notes payable and $1,700 accrued interest into 34,166,667 shares of common stock at a conversion price of $0.00024. After conversion, a principal balance of $0 remained on the notes payable. On the day of conversion, the Company revalued the derivative liability and recorded a loss on the derivative liability of ($4,425); and reduced the pro-rated balance of the derivative liability by $17,877 into additional paid in capital. As such, the derivative liability had a $0 balance after conversion on January 2, 2014. In 2014, the Company accelerated amortization of the discount of $1,670 into interest expense. On April 7, 2013, the Company entered into a convertible promissory note with a vendor to satisfy outstanding invoices in the amount of $68,000. The note bears no interest and was convertible into shares of common stock On March 31, 2014, the Company re-valued the derivative liability and recorded a gain on derivative liability of $538 making the balance in the derivative liability at March 31, 2014 $65,656. The Company also recorded $16,127 amortization of the original discount into interest expense. On May 21, 2013, the Company entered into a second Convertible Promissory Note with Continental Equities, LLC, a New York limited liability corporation for an 8% convertible promissory note in the aggregate principal amount of $30,000, which together with any unpaid accrued interest is due on May 20, 2014. $28,500 of the proceeds was funded directly to the company while $1,500 was recorded original issuance discount. · On January 21, 2014, Continental converted the remaining $17,760 of its outstanding notes payable into 64,581,818 shares of common stock at a conversion price of $0.000275. On the day of conversion, the Company revalued the derivative liability and recorded a gain on derivative liability of $28 and reduced the pro-rated portion of the derivative liability by $20,975 into additional paid in capital bringing the derivative liability to $0. The Company also accelerated the amortization of $7,433 of the original discount into interest expense. On December 10, 2013, the Company entered into an assignment agreement where the Company assigned a previously entered into $17,500 Notes payable with Pitts Riley to Microcap Equity Group, LLC, a third party. As such the Company entered into a 10% Convertible note with Microcap Equity Group for $17,500 which matured on December 10, 2014. · On January 27, 2014, Microcap converted the remaining $7,400 of the notes payable into 52,857,142 shares of common stock at a conversion price of $0.00014 bringing the notes payable balance to $0. On the day of conversion, the Company re-valued the derivative liability and recorded a gain on the derivative liability of $335 and reduced the pro-rated portion of the derivative liability of $25,958 into additional paid in capital. Additionally, the company accelerated the amortization of $3,952 of the original discount into interest expense. On December 24 ,2013, The Company entered into an assignment agreement where the Company assigned a previously entered into $48,470 Notes Payable to Pitts Riley to Magna Group, LLC, a third party. As such the Company entered into a 10% Convertible note with Magna Group for $48,470 on December 26, 2013. The Note matured on December 26, 2014. On January 6, 2014, Magna converted the remaining $14,000 of the original notes payable into 50,909,090 shares of common stock at a conversion price of $0.00028. After conversion, $0 remained on the original notes payable. On the day of conversion, the Company revalued the derivative liability and recorded a loss on derivative liability of ($10,305) and reduced the pro-rated portion of the derivative liability by $24,830 into additional paid in capital. The Company also accelerated the remaining discount of $14,000 into interest expense. In summary, during the periods ended March 31, 2014 and 2013, the Company recorded a total of $47,305 and $39,911, respectively in interest expense. During periods ended March 31, 2014 and 2013, the amount of interest expense associated with the amortization of discounts associated with the amortization of the debt discounts established by derivative liabilities in the convertible notes was $43,183 and $37,100.

Convertible Notes Payable Disclosure

3 Months Ended

Mar. 31, 2014

NOTE 3. CONVERTIBLE NOTES PAYABLE

In October, 2012, the Company entered into a 10% Contingently Convertible Promissory Note with Birr Marketing Group, Inc. for $20,000 with a due date of April 1, 2013. At March 31, 2014, the Company revalued the fair market value of the derivative liability and recorded a loss of ($242,356) on derivative liability.

On April 16, 2013, the Company entered into a sixth Securities Purchase Agreement with Asher Enterprises, Inc. (“Asher”) a Delaware Corporation for an 8% contingently convertible promissory note with an aggregate principal amount of $42,500 which together with any unpaid accrued interest was due on December 21, 2013.

· On January 2, 2014, Asher converted the remaining $6,500 of its outstanding notes payable and $1,700 accrued interest into 34,166,667 shares of common stock at a conversion price of $0.00024. After conversion, a principal balance of $0 remained on the notes payable. On the day of conversion, the Company revalued the derivative liability and recorded a loss on the derivative liability of ($4,425); and reduced the pro-rated balance of the derivative liability by $17,877 into additional paid in capital. As such, the derivative liability had a $0 balance after conversion on January 2, 2014. In 2014, the Company accelerated amortization of the discount of $1,670 into interest expense.

On April 7, 2013, the Company entered into a convertible promissory note with a vendor to satisfy outstanding invoices in the amount of $68,000. The note bears no interest and was convertible into shares of common stock On March 31, 2014, the Company re-valued the derivative liability and recorded a gain on derivative liability of $538 making the balance in the derivative liability at March 31, 2014 $65,656. The Company also recorded $16,127 amortization of the original discount into interest expense.

On May 21, 2013, the Company entered into a second Convertible Promissory Note with Continental Equities, LLC, a New York limited liability corporation for an 8% convertible promissory note in the aggregate principal amount of $30,000, which together with any unpaid accrued interest is due on May 20, 2014. $28,500 of the proceeds was funded directly to the company while $1,500 was recorded original issuance discount.

· On January 21, 2014, Continental converted the remaining $17,760 of its outstanding notes payable into 64,581,818 shares of common stock at a conversion price of $0.000275. On the day of conversion, the Company revalued the derivative liability and recorded a gain on derivative liability of $28 and reduced the pro-rated portion of the derivative liability by $20,975 into additional paid in capital bringing the derivative liability to $0. The Company also accelerated the amortization of $7,433 of the original discount into interest expense.

On December 10, 2013, the Company entered into an assignment agreement where the Company assigned a previously entered into $17,500 Notes payable with Pitts Riley to Microcap Equity Group, LLC, a third party. As such the Company entered into a 10% Convertible note with Microcap Equity Group for $17,500 which matured on December 10, 2014.

· On January 27, 2014, Microcap converted the remaining $7,400 of the notes payable into 52,857,142 shares of common stock at a conversion price of $0.00014 bringing the notes payable balance to $0. On the day of conversion, the Company re-valued the derivative liability and recorded a gain on the derivative liability of $335 and reduced the pro-rated portion of the derivative liability of $25,958 into additional paid in capital. Additionally, the company accelerated the amortization of $3,952 of the original discount into interest expense.

On December 24 ,2013, The Company entered into an assignment agreement where the Company assigned a previously entered into $48,470 Notes Payable to Pitts Riley to Magna Group, LLC, a third party. As such the Company entered into a 10% Convertible note with Magna Group for $48,470 on December 26, 2013. The Note matured on December 26, 2014. On January 6, 2014, Magna converted the remaining $14,000 of the original notes payable into 50,909,090 shares of common stock at a conversion price of $0.00028. After conversion, $0 remained on the original notes payable. On the day of conversion, the Company revalued the derivative liability and recorded a loss on derivative liability of ($10,305) and reduced the pro-rated portion of the derivative liability by $24,830 into additional paid in capital. The Company also accelerated the remaining discount of $14,000 into interest expense.

In summary, during the periods ended March 31, 2014 and 2013, the Company recorded a total of $47,305 and $39,911, respectively in interest expense. During periods ended March 31, 2014 and 2013, the amount of interest expense associated with the amortization of discounts associated with the amortization of the debt discounts established by derivative liabilities in the convertible notes was $43,183 and $37,100.

Dewmar International BMC, Inc. 10-Q