Quarterly report pursuant to Section 13 or 15(d)

Convertible Debt and Other Debt (Tables)

v3.10.0.1
Convertible Debt and Other Debt (Tables)
 9 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]  
Schedule of Convertible Debt

    Debt converted
to stock 		 
Current liabilities        
Convertible Debentures, face value   $ 6,962,634  
Revolving Note with interest     4,750,000  
May 19, 2017 Promissory Note with interest     750,000  
Other Notes with interest     226,000  
Total debt converted in the second quarter of 2018   $ 12,688,634  

Schedule of Convertible Debts and Outstanding Balances

Convertible Notes

 

Inception Date   Term     Loan Amount    

Outstanding Balance

with OID

    Original Issue Discount     Interest Rate     Conversion Price (Convertible at Inception Date)     Deferred Finance Fees     Discount related to fair value of conversion feature and warrants/shares  
July 22, 2015     30 months 1   $ 2,398,000     $ - 4   $ 218,000 2     10 %3   $ 8.40     $ 388,532     $ 2,163,074  
September 25, 2015     30 months 1     1,210,000       - 4     110,000 2     10 %3   $ 8.40       185,956       1,022,052  
October 2, 2015     30 months 1     165,000       - 4     15,000 2     10 %3   $ 8.40       26,345       140,832  
October 6, 2015     30 months 1     33,000       - 4     3,000 2     10 %3   $ 8.40       5,168       26,721  
October 14, 2015     30 months 1     55,000       - 4     5,000 2     10 %3   $ 8.40       8,954       49,377  
November 2, 2015     30 months 1     275,000       - 4     25,000 2     10 %3   $ 8.40       43,079       222,723  
November 10, 2015     30 months 1     55,000       - 4     5,000 2     10 %3   $ 8.40       8,790       46,984  
November 12, 2015     30 months 1     236,500       - 4     21,500 2     10 %3   $ 8.40       38,518       212,399  
November 20, 2015     30 months 1     220,000       - 4     20,000 2     10 %3   $ 8.40       37,185       200,000  
December 4, 2015     30 months 1     187,000       - 4     17,000 2     10 %3   $ 8.40       37,352       170,000  
December 11, 2015     30 months 1     396,000       - 4     36,000 2     10 %3   $ 8.40       75,449       360,000  
December 18, 2015     30 months 1     60,500       - 4     5,500 2     10 %3   $ 8.40       11,714       55,000  
December 31, 2015     30 months 1     110,000       - 4     10,000 2     10 %3   $ 8.40       20,634       100,000  
January 11, 2016     30 months 1     110,000       - 4     10,000 2     10 %3   $ 8.40       24,966       80,034  
January 20, 2016     30 months 1     55,000       - 4     5,000 2     10 %3   $ 8.40       9,812       40,188  
January 29, 2016     30 months 1     330,000       - 4     30,000 2     10 %3   $ 8.40       60,887       239,113  
February 26, 2016     30 months 1     220,000       - 4     20,000 2     10 %3   $ 8.40       43,952       156,048  
March 10, 2016     30 months 1     137,500       - 4     12,500 2     10 %3   $ 8.40       18,260       106,740  
March 18, 2016     30 months 1     396,000       - 4     36,000 2     10 %3   $ 8.40       94,992       265,008  
March 24, 2016     30 months 1     117,334       - 4     10,667 2     10 %3   $ 8.40       15,427       91,240  
March 31, 2016     30 months 1     195,670       - 4     17,788 2     10 %3   $ 8.40       2,436       175,446  
October 20, 2017     12 months       150,000       -       -       5 %   $ 7.50       7,500       -  
October 25, 2017     6 months       103,000       -       -       12 %     -       3,000       -  
October 27, 2017     12 months       170,000       -       -       5 %     -       4,250       10,000  
November 13, 2017     9 months       380,000       -       15,200       8 %   $ 7.50       15,200       46,274  
November 22, 2017     12 months       100,000       -       10,000       5 %     -       2,000       -  
November 28, 2017     10 months       103,000       -       3,000       12 %     -       -       -  
November 29, 2017     6 months       150,000       -       -       15 %   $ 7.50       -       15,200  
November 30, 2017     3 months       50,000       -       -       8 %   $ 7.50       -       -  
December 5, 2017     3 months       52,500       -       -       10 %   $ 7.50       2,500       -  
December 6, 2017     4 months       100,000       -       -       10 %   $ 7.50       -       -  
December 11, 2017     6 months       130,000       -       1,500       5 %     -       6,500       6,460  
December 19, 2017     6 months       110,000       -       1,500       5 %     -       5,500       5,775  
December 28, 2017     6 months       55,000       -       -       15 %   $ 7.50       5,000       -  
December 29, 2017     12 months       105,000       -       -       5 %     -       5,000       -  
January 3, 2018     12 months       95,000       -       4,750       5 %      -       2,000       -  
January 16, 2018     12 months       131,250       -       -               -       6,250       -  
January 19, 2018     6 months       150,000       -       -       10 %   $ 7.50       6,000       12,267  
February 9, 2018     6 months       100,000       -       -       15 %   $ 7.50       23,500       -  
February 15, 2018     6 months       100,000       -       -       15 %   $ 7.50       9,000       10,474  
March 12, 2018     6 months       85,000       -       1,150       5 %      -       4,250       5,183  
March 12, 2018     6 months       253,000       -       53,000       0 %     -               28,722  
April 11, 2018     6 months       100,000       100,000       4,000       15 %   $ 7.50       20,000       7,218  
April 23, 2018     6 months       103,000       103,000       -       12 %     -       3,000       -  
April 24, 2018     9 months       77,000       77,000       -       12 %    $ 7.50       2,000       -  
April 25, 2018     12 months       105,000       105,000       -       4 %   $ 7.50       5,000       4,590  
April 25, 2018     12 months       105,000       105,000       -       4 %   $ 7.50       5,000       4,590  
April 25, 2018     12 months       130,000       130,000       -       6 %   $ 7.50       6,500       -  
April 26, 2018     12 months       65,000       65,000       6,500       5 %     -       2,000       -  
May 9, 2018     12 months       250,000       250,000       -       10 %   $ 7.50       12,500       26,466  
May 11, 2018     6 months       161,250       161,250       11,250       15 %   $ 7.50       10,000       -  
May 14, 2018     9 months       50,000       50,000       2,500       15 %   $ 7.50       2,500       3,704  
May 17, 2018     12 months       380,000       380,000       15,200       8 %   $ 7.50       15,200       43,607  
May 23, 2018     9 months       103,000       103,000       -       12 %     -       3,000       -  
May 24, 2018     9 months       52,500       52,500       2,500       4 %     -       -       2,075  
May 25, 2018     12 months       78,750       78,750       -       4 %   $ 7.50       3,750       3,112  
May 30, 2018     2 months       150,000       -       -       8 %   $ 7.50       -       6,870  
June 4, 2018     12 months       75,000       75,000       7,500       5 %     -       2,000       3,869  
June 8, 2018     6 months       50,000       50,000       2,500       15 %   $ 7.50       2,500       3,271  
June 12, 2018     6 months       100,000       -       -       5 %   $ 7.50       5,000       -  
June 14, 2018     9 months       280,000       280,000       25,000       10 %     -       5,000       17,573  
June 16, 2018     9 months       130,000       130,000       -       5 %     -       -       -  
June 16, 2018     6 months       110,000       110,000       -       5 %     -       -       -  
June 26, 2018     3 months       150,000       150,000       -       15 %   $ 7.50       -       20,242  
June 28, 2018     6 months       50,000       50,000       -       15 %   $ 7.50       -       10,518  
July 2, 2018     12 months       125,000       125,000       -       4 %     -       6,250       5,588  
July 10, 2018     12 months       95,000       95,000       6,750       5 %     -       -       -  
July 13, 2018     9 months       103,000       103,000       -       12 %     -       3,000       -  
July 17, 2018     3 months       100,000       100,000       15,000       15 %   $ 7.50       -       16,944  
July 19, 2018     12 months       184,685       184,685       34,685       10 %   $ 7.50       -       -  
July 30, 2018     12 months       80,000       80,000       -       6 %   $ 7.50       4,000       -  
July 31, 2018     3 months       150,000       150,000       -       12 %   $ 7.50       -       6,578  
August 8, 2018     6 months       100,000       100,000       -       15 %   $ 7.50       -       -  
August 15, 2018     4 months       100,000       100,000       -       15 %   $ 7.50       -       -  
August 28, 2018     12 months       131,250       131,250       -       4 %     -       6,250       4,443  
September 7, 2018     6 months       85,000       85,000       -       5 %     -       -       4,364  
            $ 13,744,689     $ 3,859,435     $ 856,440                     $ 1,390,308     $ 6,258,956  

 

1. The loan term was extended by 180 days and further extended on January 15, 2018 by 60 days to repay in common stock. The Debenture holders signed letter agreements on May 14, 2018 and June 11, 2018 to waive default penalties relating to the maturity date.

2. The original issue discount is reflected in the first year.

3. The annual interest started accruing in the second year.

4. The Debentures were converted into Series AA Convertible Preferred Stock.
Schedule of Fair Value of Common Stock Issued in Connection with Refinancings

Origination Date   Amended Start Date     New Maturity Date     Loan Amount     New Loan Amount     Total Unamortized Discount as of June 30, 2018     Amortization from July 1, 2018 to Modification Date     Unamortized discount  
12/11/2017     6/15/2018       12/11/2018 *    $ 130,000     $ 130,000     $ -     $ -     $ -  
12/19/2017     6/15/2018       12/19/2018 *     110,000       110,000       -       -       -  
1/3/2018     7/11/2018       7/10/2019       95,000       95,000       3,458       (69 )     3,389  
1/17/2018     8/29/2018       8/27/2019       131,250       131,250       3,442       (352 )     3,090  
1/19/2018     7/19/2018       8/22/2019 *     150,000       184,685       1,288       (42 )     1,246  
2/9/2018     8/8/2018       2/8/2019 *     100,000       100,000       5,193       (556 )     4,637  
2/15/2018     8/15/2018       12/15/2018 *     100,000       100,000       2,662       (2,662 )     -  
3/12/2018     9/7/2018       3/12/2019       85,000       85,000       2,172       (411 )     1,761  
5/30/2018     7/31/2018       10/31/2018       150,000       150,000       9,280       (1,868 )     7,412  
3/30/2018     4/30/2018       9/30/2018       170,000       170,000       -       -       -  
                    $ 1,221,250     $ 1,255,935     $ 27,495     $ (5,960 )   $ 21,535  

 

* The original loans were recorded as extinguished, the unamortized debt discounts on the old debt were written off on extinguishment date, and a loss was recorded for each extinguishment. The July 19, 2018 Note includes an original issue discount of $34,685 added to the new loan.
Summary of Changes in Convertible Debt, Net of Unamortized Discounts

The following table provides a summary of the changes in convertible debt and revolving note payable, net of unamortized discounts, during 2018:

 

    2018  
Balance at January 1,   $ 11,787,776  
Issuance of convertible debt, face value     4,664,000  
Deferred financing cost     (315,516 )
Debt discount related to one-time interest charge     (147,000 )
Contingent beneficial conversion feature on convertible note     (253,000 )
Debt discount from warrants issued with debt     (162,023 )
Debt discount from shares issued with the notes     (222,272 )
Conversion of debt into equity     (10,962,634 )
Payments     (2,097,750 )
Accretion of interest and amortization of debt discount to interest expense through September 30,     1,327,984  
Balance at September 30,     3,619,565  
Less: current portion     3,619,565  
Convertible debt, long-term portion   $ -  

Schedule of Merchant Agreements

The following table shows our Merchant Agreements as of September 30, 2018.

 

Inception Date   Purchase Price     Purchased Amount     Outstanding Balance     Daily Payment     Interest Rate     Deferred Finance Fees  
September 29, 2017     75,000       102,000     $ -       1,200.00       15 %     1,500  
October 25, 2017     110,000       153,890       -       1,539.00       15 %     8,800  
December 7, 2017     160,000       212,800       -       1,251.76       25 %     5,799  
December 12, 2017     160,000       212,800       -       1,251.76       15 %     5,258  
February 27, 2018     110,000       147,400       -       921.25       25 %     1,650  
April 11, 2018     140,000       187,600       -       1,275.00       13 %     2,800  
May 11, 2018     180,000       243,000       82,468       1,518.75       25 %     2,599  
May 15, 2018     180,000       244,800       86,858       1,530.00       15 %     3,600  
June 29, 2018     140,000       190,400       88,657       1,269.33       25 %     2,100  
July 16, 2018     180,000       246,600       124,544       1,790.00       13 %     3,600  
    $ 1,435,000     $ 1,941,290     $ 382,527                     $ 37,706