Convertible Debenture	9 Months Ended
Sep. 30, 2015
Convertible Debenture
Convertible Debenture	NOTE 6 – CONVERTIBLE DEBENTURE On August 28, 2015, in consideration for future services, the Company issued a $60,000 convertible note which is unsecured, bears interest at 2% per annum and due on November 28, 2015. The note is convertible into shares of common stock 90 days after the date of issuance (November 26, 2015) at a conversion rate of 60% of the average of the three lowest closing bid prices of the Company’s common stock for the twenty trading days ending one trading day prior to the date the conversion notice is sent by the holder to the Company. If, at the time of conversion, the lowest trading prices during the applicable 20 trading day period is equal to or less than $0.0001, then the conversion price shall equal the lesser of the (1) variable conversion price or (2) $0.00001. In accordance with ASC 470-20, “Debt with Conversion and Other Options”, the Company recognized the intrinsic value of the conversion feature of $40,000 as a stock settle debt obligation and an equivalent discount which will be charged to operations over the term of the convertible debentures from the effective date to the first convertible date. During the nine months ended September 30, 2015, the Company accreted $10,881 of the debt discount which was recorded as interest expense. As at September 30, 2015, the carrying value of the debenture was $30,881 (December 31, 2014 - $nil). As at September 30, 2015, accrued interest of $108 (2014 - $nil) has been recorded in accounts payable and accrued liabilities.

Convertible Debenture

9 Months Ended

Sep. 30, 2015

NOTE 6 – CONVERTIBLE DEBENTURE

On August 28, 2015, in consideration for future services, the Company issued a $60,000 convertible note which is unsecured, bears interest at 2% per annum and due on November 28, 2015. The note is convertible into shares of common stock 90 days after the date of issuance (November 26, 2015) at a conversion rate of 60% of the average of the three lowest closing bid prices of the Company’s common stock for the twenty trading days ending one trading day prior to the date the conversion notice is sent by the holder to the Company. If, at the time of conversion, the lowest trading prices during the applicable 20 trading day period is equal to or less than $0.0001, then the conversion price shall equal the lesser of the (1) variable conversion price or (2) $0.00001.

In accordance with ASC 470-20, “Debt with Conversion and Other Options”, the Company recognized the intrinsic value of the conversion feature of $40,000 as a stock settle debt obligation and an equivalent discount which will be charged to operations over the term of the convertible debentures from the effective date to the first convertible date. During the nine months ended September 30, 2015, the Company accreted $10,881 of the debt discount which was recorded as interest expense. As at September 30, 2015, the carrying value of the debenture was $30,881 (December 31, 2014 - $nil). As at September 30, 2015, accrued interest of $108 (2014 - $nil) has been recorded in accounts payable and accrued liabilities.

Xalles Holdings Inc. 10-Q/A