Note 5 - Debt

9 Months Ended

Sep. 30, 2013

5. DEBT

As of September 30, 2013 and December 31, 2012 debt consisted of the following:

	September 30, 2013			December 31, 2012
*Current*
Related party notes (a)	$	877,000		$	565,000
Promissory notes (b)		2,845,000			975,000
Less discount on promissory notes		(16,128	)		(30,050	)
*Net current notes payable*		3,705,872			1,509,950

*Long Term*
Promissory notes (b)		150,000			1,665,000
Less discount on promissory notes		(6,854	)		(20,573	)
*Net long term notes payable*		143,146			1,644,427
Total	$	3,849,018		$	3,154,377

(a) In January 2013, Stuart J. Doshi, President and CEO, advanced to the Company a loan in the amount of $5,000. The note bears interest at 10% per annum and is payable on demand. In connection with this note, the Company issued 1,000 warrants to purchase our common stock at $0.50 per share for a period of three years. The fair value of the warrants issued was $40 (Note 9)

In March 2013, Stuart J. Doshi, President and CEO, advanced to the Company three loans totaling $85,000. The notes bear interest at 10% per annum and are payable on demand. In connection with these notes, the Company issued 17,000 warrants to purchase our common stock at $0.50 per share for a period of three years. The fair value of the warrants issued was $876 (Note 9).

In April 2013, Stuart J. Doshi, President and CEO, advanced to the Company four loans totaling $110,000. The notes bear interest at 10% per annum and are payable on demand. In connection with these notes, the Company issued 22,000 warrants to purchase our common stock at $0.50 per share for a period of three years. The fair value of the warrants issued was $1,028 (Note 9).

In May 2013, Stuart J. Doshi, President and CEO, advanced to the Company a loan in the amount of $5,000. The note bears interest at 10% per annum and is payable on demand. In connection with this note, the Company issued 1,000 warrants to purchase our common stock at $0.35 per share for a period of three years. The fair value of the warrants issued was $48 (Note 9).

In June 2013, a Company Director advanced to the Company a loan in the amount of $50,000. The note bears interest at 10% per annum and matures in June 2014. In connection with this note, the Company issued 10,000 warrants to purchase our common stock at $0.35 per share for a period of three years. The fair value of the warrants issued was $508 (Note 9).

In August 2013, Stuart J. Doshi, President and CEO, advanced to the Company three loans totaling $40,000. The notes bear interest at 10% per annum and are payable on demand. In connection with these notes, the Company issued 8,000 warrants to purchase our common stock at $0.10 per share for a period of three years. The fair value of the warrants issued was $350 (Note 9).

In September 2013, Stuart J. Doshi, President and CEO, advanced to the Company two loans totaling $17,000. The notes bear interest at 10% per annum and are payable on demand. In connection with these notes, the Company issued 3,400 warrants to purchase our common stock at $0.10 per share for a period of three years. The fair value of the warrants issued was $110 (Note 9).

(b)

In January 2013, the Company issued a non-interest bearing unsecured promissory note in the amount of $250,000 (Note 7). The note will mature in July 2014.

In May 2013, the Company issued a promissory note in the amount of $40,000. The note bears interest at 8% per annum and matures in December 2013. In connection with this note, the Company issued 8,000 warrants to purchase our common stock at $0.25 per share for a period of three years. The fair value of the warrants issued was $494 (Note 9).

In June 2013, the Company issued a promissory note in the amount of $45,000. The note bears interest at 8% per annum and matures in December 2013. In connection with this note, the Company issued 9,000 warrants to purchase our common stock at $0.25 per share for a period of three years. The fair value of the warrants issued was $477 (Note 9).

In September 2013, the Company issued a promissory note in the amount of $20,000. The note bears interest at 8% per annum and matures in November 2013.

- 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.

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GEOPETRO RESOURCES CO 10-Q/A