Loans Payable

6 Months Ended

Jun. 30, 2015

Note 2 – Loans Payable

Loans payable at June 30, 2015 and December 31, 2014 consist of the following:

	June 30, 2015		December 31, 2014

On February 17, 2012, Panache Capital, LLC entered into an agreement to purchase $50,000 of the note payable to Azfar Haque. The Company exchanged the original note to Mr. Haque with a new note to Pananche which bears interest at 10% per annum and was due February 17, 2013. During the year ended December 31, 2012, $44,348 of the note was converted to common stock. Accrued interest is equal to $2,242 and $1,962 at June 30, 2015 and December 31, 2014, respectively. This note is in default at June 30, 2015.		7,894		7,614

Unsecured $70,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and due was October 24 2013. Accrued interest is equal to $28,837 and $24,672 at June 30, 2015 and December 31, 2014, resepctively. This note is in default at June 30, 2015.		98,837		94,672

	June 30, 2015		December 31, 2014

Unsecured $16,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and was due May 3, 2013. Accrued interest is equal to $6,196 and $5,244 at June 30, 2015 and December 31, 2014, respectively. This note is in default at June 30, 2015.		22,196		21,244

Unsecured $12,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and was due February 5, 2013. During the year ended December 31, 2013, $6,210 of the note was converted to common stock. Accrued interest is equal to $3,011 and $2,667 at June 30, 2015 and December 31, 2014, respectively. This note is in default at June 30, 2015.		8,801		8,457

Unsecured $15,000 convertible note payable to Hanover Holdings I, LLC, which bears interest at 12% per annum and was due March 26, 2013. Accrued interest is equal to $5,363 and $4,470 at June 30, 2015 and December 31, 2014, respectively. This note is in default at June 30, 2015.		20,363		19,470

Unsecured $39,647 note payable to Azfar Hague, which bears interest at 9% per annum and was due April 25, 2013. $20,000 of this note was purchased by Tangiers Investment Group, LLC on July 26, 2013. During the year ended December 31, 2014, $9,000 of the note was converted to common stock. Accrued interest is equal to $4,918 and $4,443 at June 30, 2015 and December 31, 2014, respectively. This note is in default at June 30, 2015.		15,565		15,090

Unsecured $3,000 note payable to Andre Fluellen, which calls for flat interest of $500 at maturity and was due December 1, 2013. This note was settled against accounts receivable due from Mr. Fluellen as of June 30, 2015.		-		3,500

Unsecured $3,000 note payable to Andre Fluellen, which calls for flat interest of $150 at maturity and was due February 22, 2014. This note was settled against accounts receivable due from Mr. Fluellen as of June 30, 2015.		-		3,150

Unsecured $14,500 convertible note payable to Asher Enterprises, Inc., which bears interest at 8% per annum and is due May 5, 2014. The note is discounted for its unamortized beneficial conversion feature of $6,202 at December 31, 2013. Accrued interest is equal to $2,195 and $1,620 at June 30, 2015 and December 31, 2014, respectively. This note is in default at June 30, 2015.		16,695		16,120

Unsecured $8,500 note payable to Bulldog Insurance, which bears interest at 5% per annum and due February 28, 2014. During the year ended December 31, 2014, $3,000 of the note was converted to common stock. Accrued interest is equal to $574 and $437 at June 30, 2015 and December 31, 2014, respectively. This note is in default at June 30, 2015.		6,074		5,937

Unsecured $5,000 convertible note payable to WHC Capital, LLC., which bears interest at 8% per annum and was due August 12, 2014. The note is discounted for its unamortized beneficial conversion feature of $3,068 at December 31, 2013. Accrued interest is equal to $756 and $557 at June 30, 2015 and December 31, 2014, respectively. This note is in default at June 30, 2015.		5,756		5,557

	June 30, 2015		December 31, 2014

Unsecured $7,700 convertible note payable to Andre Fluellen, which calls for flat interest of $770 due at maturity and was due June 21, 2014. Accrued interest is equal to $1,177 at December 31, 2014. This note, including accrued interest of $1,559, was settled against accounts receivable due from Mr. Fluellen as of June 30, 2015.		-		8,877

Unsecured $3,450 non-interest bearing note payable to Azfar Hague due September 20, 2014. This note is in default at June 30, 2015.		3,450		3,450

Unsecured $2,000 non-interest bearing note payable to Bulldog Insurance due September 26, 2014. This note is in default at June 30, 2015.		2,000		2,000

Unsecured $29,000 convertible note payable to LG Capital Funding, LLC., which bears interest at 8% per annum and was due March 17, 2015. The note is discounted for its unamortized beneficial conversion feature of $6,039 at December 31, 2014. Accrued interest is equal to $2,987 and $1,837 at June 30, 2015 and December 31, 2014, respectively. This note is in default at June 30, 2015.		31,987		24,798

Unsecured $18,000 convertible note payable to Tangiers Investment Group, LLC., which bears interest at 8% per annum and is due March 27, 2015. The note is discounted for its unamortized beneficial conversion feature of $4,241 at December 31, 2014. Accrued interest is equal to $1,815 and $1,101 at June 30, 2015 and December 31, 2014, respectively. This note is in default at June 30, 2015.		19,815		14,860

Unsecured $6,000 note payable to Andre Fluellen, which bears interest at 10% per annum and is due June 21, 2015. Accrued interest is equal to and $317 at December 31, 2014. This note, including accrued interest of $615, was settled against accounts receivable due from Mr. Fluellen as of June 30, 2015.		-		6,317

Unsecured $10,000 note payable to Falmouth Street Holdings, LLC, which bears interest at 10% per annum and is due on demand. Accrued interest is equal to $1,222 and $726 at June 30, 2015 and December 31, 2014, respectively.		11,222		10,726

On April 9, 2014, GEL Properties, LLC entered into an agreement to purchase $24,000 of notes payable to Frank Russo. The note bears interest at 8% per annum and is due April 9, 2015. During the year ended December 31, 2014, $16,500 of the note was converted to common stock. The note is discounted for its unamortized beneficial conversion feature of $2,015 at December 31, 2014. Accrued interest is equal to $1,031 and $733 at June 30, 2015 and December 31, 2014, respectively. This note is in default at June 30, 2015.		8,531		6,218

Unsecured $5,000 note payable to Israek Idonije, which is noninterest bearing and was due July 3, 2014. During the year ended December 31, 2014, $2,800 was repaid on the loan and $3,674 and $1,986 of penalty interest was accrued at June 30, 2015 and December 31, 2014, respectively. This note is in default at June 30, 2015.		4,404		4,186

	June 30, 2015		December 31, 2014

Unsecured $35,000 convertible note payable to Lucosky Brookman LLP, which bears interest at 12% per annum and due on demand. Accrued interest is equal to $9,676 and $7,593 at June 30, 2105 and December 31, 2014, respectively.		44,676		42,593

Unsecured $43,922 convertible note payable to Lucosky Brookman LLP, which bears interest at 12% per annum and due on demand. Accrued interest is equal to $12,140 and $9,526 at June 30, 2015 and December 31, 2014, respectively.		56,062		53,448

Unsecured $32,500 convertible note payable to Asher Enterprises, Inc., which bears interest at 8% per annum and was due January 31, 2014. During the year ended December 31, 2014, $7,988 of the note was converted to common stock. Accrued interest is equal to $4,932 and $3,959 at June 30, 2015 and December 31, 2014, respectively. This note is in default at June 30, 2015.		29,444		28,471

Unsecured $7,000 note payable to Andre Fluellen, which calls for flat interest of $1,500 at maturity and was due October 30, 2013. This note was settled against accounts receivable due from Mr. Fluellen as of June 30, 2015.		-		8,500

Unsecured $20,000 convertible note payable to WHC Capital, LLC., which bears interest at 8% per annum and was due March 9, 2014. Accrued interest is equal to $3,433 and $2,639 at June 30, 2015 and December 31, 2014. This note is in default at June 30, 2015.		23,433		22,639

Unsecured $32,500 convertible note payable to Asher Enterprises, Inc., which bears interest at 8% per annum and was due March 3, 2014. During the year ended December 31, 2014, $7,500 of the note was converted to common stock. Accrued interest is equal to $4,754 and $3,762 at June 30, 2015 and December 31, 2014, respectively. This note is in default at June 30, 2015.		29,754		28,762

Unsecured $7,500 note payable to Andre Fluellen, which calls for flat interest of $1,400 at maturity and was due December 1, 2013. This note was settled against accounts receivable due from Mr. Fluellen as of June 30, 2015.		-		8,900

On May 7, 2014, LG Capital Funding, LLC entered into an agreement to purchase $40,000 of notes payable to Frank Russo. The note bears interest at 8% per annum and is due May 7, 2015. The note is discounted for its unamortized beneficial conversion feature of $13,917 at December 31, 2014. Accrued interest is equal to $3,674 and $2,087 at June 30, 2015 and December 31, 2014, respectively. This note is in default at June 30, 2015.		43,674		28,170

Unsecured $12,5000 convertible note payable to Microcap Equity Group LLC, which bears interest at 12% per annum and was due October 8, 2014. Accrued interest is equal to $1,841 and $1,097 at June 30, 2015 and December 31, 2014, respectively. This note is in default at June 30, 2015.		14,341		13,597

	June 30, 2015		December 31,2014

Unsecured $4,200 convertible note payable to Tangiers Investment Group, LLC., which bears interest at 8% per annum and is due April 8, 2015. The note is discounted for its unamortized beneficial conversion feature of $1,128 at December 31, 2014. Accrued interest is equal to $413 and $246 at June 30, 2015 and December 31, 2014, respectively. This note is in default at June 30, 2015.		4,613		3,318

Unsecured loan advances payable to Health Information Systems Fund, LLC, which bear no interest and are due on demand.		718,800		333,000

Unsecured $5,000 note payable to Andre Fluellen, which bears interest at 10% per annum and is due September 9, 2015. Accrued interest is equal to $155 at and December 31, 2014. This note, including accrued interest of $403, was settled against accounts receivable due from Mr. Fluellen as of June 30, 2015.		-		5,155

Unsecured $2,500 note payable to Andre Fluellen, which bears interest at 10% per annum and is due October 20, 2015. This note, including accrued interest of $173, was settled against accounts receivable due from Mr. Fluellen as of June 30, 2015.		-		2,500

Total Loans Payable	$	1,248,387	$	861,296

The Company accrued interest expense of $21,951 and $14,261 for the six months ended June 30, 2015 and 2014, respectively, on the above loans. Accrued interest is included in the loan balances.

The Company borrowed $385,800 and $97,850 during the six months ended June 30, 2015 and 2014, respectively. During the six months ended June 30, 2015, the Company settled $48,000 of loans payable against outstanding accounts receivable. During the six months ended June 30, 2014, the Company converted $428,418 of loans payable into 7,674,970,146 shares of the Company’s common stock and $34,000 of loans payable into 17,000,000 shares of the Company’s Series A preferred stock.

EAST COAST DIVERSIFIED CORP 10-Q