Annual report pursuant to Section 13 and 15(d)

Convertible Debt and Other Debt (Tables)

v3.20.1
Convertible Debt and Other Debt (Tables)
 12 Months Ended
Dec. 31, 2019
Debt Disclosure [Abstract]  
Schedule of Convertible Debt

    Debt converted
to stock		  
Current liabilities        
Convertible Debentures, face value   $ 6,962,635  
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 during the year 2018   $ 12,688,635  

Schedule of Convertible Debts and Outstanding Balances

The specific terms of the convertible notes and outstanding balances as of December 31, 2019 are listed in the tables below.

 

Inception Date   Term   Loan Amount     Outstanding
balance with OID		     Original Issue
Discount (OID)		     Interest Rate     Conversion Price     Deferred
Finance Fees		     Discount for
conversion feature and
warrants/shares		  
February 15, 2018
(2) (1)		   6 months   $ 100,000     $ 115,000     $ -       10 %     2.5     $ 9,000     $ 17,738  
May 17, 2018   12 months   $ 380,000     $ 166,703     $ 15,200       8 %     (3 )   $ 15,200     $ 332,407  
May 30, 2018 (1)   2 months   $ 150,000     $ 75,000     $ -       8 %     7.5     $ -     $ 6,870  
June 8, 2018 (1)   6 months   $ 50,000     $ 50,000     $ 2,500       15 %     7.5     $ 2,500     $ 3,271  
June 12, 2018 (1)   6 months   $ 100,000     $ 100,000     $ -       5 %     7.5     $ 5,000     $ -  
June 16, 2018   9 months   $ 130,000     $ 79,000     $ -       5 %     (3 )   $ -     $ -  
June 16, 2018   6 months   $ 110,000     $ 79,000     $ -       5 %     (3 )   $ -     $ -  
June 26, 2018 (2) (1)   3 months   $ 150,000     $ 86,250     $ -       10 %     2.5     $ -     $ 35,947  
June 28, 2018 (1)   6 months   $ 50,000     $ 50,000     $ -       5 %     7.5     $ -     $ 10,518  
July 17, 2018 (2) (1)   3 months   $ 100,000     $ 105,000     $ 15,000       10 %     2.5     $ -     $ 82,550  
July 19, 2018   12 months   $ 184,685     $ 150,000     $ 34,685       10 %     (3 )   $ -     $ -  
October 19 , 2018 (1)   6 months   $ 100,000     $ 100,000     $ -       5 %     7.5     $ -     $ -  
November 13, 2018 (2) (1)   6 months   $ 200,000     $ 220,000     $ -       10 %     2.5     $ -     $ 168,634  
January 2, 2019   12 months   $ 125,000     $ 97,000     $ -       4 %     (3 )   $ 6,250     $ 89,120  
January 3, 2019   6 months   $ 50,000     $ 50,000     $ 2,500       15 %     7.5     $ 2,500     $ -  
February 21, 2019   12 months   $ 215,000     $ 215,000     $ -       4 %     (3 )   $ 15,000     $ 185,891  
February 22, 2019   9 months   $ 115,563     $ 115,562     $ 8,063       7 %     (3 )   $ 2,500     $ -  
March 18, 2019 (1)   6 months   $ 100,000     $ 100,000     $ -       4 %     7.5     $ -     $ 10,762  
June 4, 2019   9 months   $ 500,000     $ 500,000     $ -       8 %     (3 )   $ 40,500     $ 70,631  
May 15, 2019 (5)   12 months   $ 75,000     $ 75,000     $ 7,500       5 %     (3 )   $ 2,000     $ 4,235  
May 28, 2019   12 months   $ 115,500     $ 115,500     $ 5,500       8 %     (3 )   $ -     $ 33,531  
April 30, 2019   12 months   $ 105,000     $ 105,000     $ -       4 %     (3 )   $ 5,000     $ 3,286  
June 19, 2019   12 months   $ 105,000     $ 105,000     $ -       4 %     (3 )   $ 5,000     $ 2,646  
April 9, 2019   12 months   $ 118,800     $ 88,800     $ 8,800       4 %     (3 )   $ 3,000     $ -  
April 10, 2019 (2) (1)   3 months   $ 75,000     $ 86,250     $ -       10 %     2.5     $ -     $ 61,091  
May 20, 2019 (1)   3 months   $ 100,000     $ 100,000     $ -       10 %     2.5     $ -     $ 13,439  
June 7, 2019 (1)   6 months   $ 125,000     $ 125,000     $ -       10 %     7.5     $ -     $ 18,254  
July 1, 2019   12 months   $ 107,500     $ 107,500     $ -       4 %     (3 )   $ 7,500     $ 11,246  
July 8, 2019 (5)   12 months   $ 65,000     $ 65,000     $ -       5 %     (3 )   $ 8,500     $ 4,376  
July 10, 2019 (5)   9 months   $ 112,500     $ 112,500     $ -       8 %     (4 )   $ 3,000     $ -  
July 29, 2019   6 months   $ 250,000     $ 250,000     $ -       4 %     7.5     $ -     $ 36,835  
July 19, 2019   12 months   $ 115,000     $ 115,000     $ -       4 %     (3 )   $ 5,750     $ 15,460  
July 19, 2019   12 months   $ 130,000     $ 130,000     $ -       6 %     (3 )   $ 6,500     $ -  
August 6, 2019   12 months   $ 108,000     $ 108,000     $ -       4 %     (3 )   $ 11,000     $ -  
August 14, 2019 (1)   6 months   $ 50,000     $ 50,000     $ -       3 %     7.5     $ -     $ -  
August 27, 2019 (5)   10 months   $ 113,000     $ 113,000     $ -       8 %     (4 )   $ 3,000     $ -  
September 11, 2019 (5)   12 months   $ 50,000     $ 50,000     $ -       5 %     (3 )   $ 6,500     $ 3,823  
September 13, 2019   12 months   $ 100,000     $ 100,000     $ -       6 %     2.5     $ 2,000     $ -  
September 27, 2019   12 months   $ 78,750     $ 78,750     $ -       4 %     (3 )    $ 3,750     $ 13,759  
October 24, 2019   11 months   $ 103,000     $ 103,000     $ -       8 %     (4 )   $ 3,000     $ -  
October 24, 2019   12 months   $ 78,750     $ 78,750     $ -       4 %     (3 )   $ 3,750     $ -  
October 25, 2019   12 months   $ 105,000     $ 105,000     $ -       8 %     2.5     $ 5,000     $ -  
October 30, 2019   12 months   $ 250,000     $ 250,000     $ -       8 %     2.5     $ 12,500     $ 5,964  
November 1, 2019   12 months   $ 270,000     $ 270,000     $ -       6 %     (3 )   $ 13,500     $ -  
October 8, 2019   12 months   $ 100,000     $ 100,000     $ -       4 %     7.5               5,725  
November 15, 2019   12 months   $ 385,000     $ 385,000     $ 35,000       10 %     2.5     $ 35,000       90,917  
December 3, 2019   12 months   $ 495,000     $ 495,000     $ 45,000       10 %     2.5     $ 45,000       56,387  
December 20, 2019   12 months   $ 275,000     $ 275,000     $ 25,000       10 %     2.5     $ 25,000       40,601  
October 24, 2019 (1)   Seven Days   $ 170,000     $ 145,000               11.76 %     2.5       -       10,552  
                                                             
                $ 6,740,565     $   204,748                     $   313,700     $ 1,446,466  

 

  (1) The note is past due. The Company and the lender are negotiating in good faith to extend the loan.
  (2) Interest was capitalized and added to the outstanding principal.
  (3) As of December 31, 2019 lender entered into a Standstill and Forbearance agreement (as described below). Loan is convertible at $2.50 until the expiration of the agreement.
  (4) Note is not convertible at December 31, 2019.
  (5) The Company’s Chief Executive Officer signed a Confession of Judgement with lenders representing his personal guarantee.

Summary of Changes in Convertible Debt and Revolving Note Payable, 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 2019:

 

    2019  
Balance at January 1,   $ 4,000,805  
Issuance of convertible debt, face value     7,196,363  
Deferred financing cost     (533,563 )
Contingent beneficial conversion feature on convertible note     (558,903 )
Debt discount from warrants issued with debt     (208,714 )
Debt discount from shares issued with the notes     (239,875 )
Conversion of debt into equity     (216,297 )
Payments     (4,396,485 )
Accretion of interest and amortization of debt discount to interest expense through December 31,     1,078,007  
Balance at December 31,     6,121,338  
Less: current portion     6,121,338  
Convertible debt, long-term portion   $ -  

Schedule of Merchant Agreements

The following table shows our Merchant Agreements as of December 31, 2019:

 

Inception Date  

Purchase

Price

     Purchased Amount     Outstanding Balance    

Daily Payment

Rate

    

Deferred Finance

Fees

  
August 5, 2019   $ 600,000     $ 816,000     $ 421,024       4,533.33     $ 6,000  
August 19, 2019     350,000       479,500       272,315       2,664.00       3,000  
August 23, 2019     175,000       239,750       132,284       1,410.00       1,750  
September 19, 2019     275,000       384,275       256,812       2,137.36       5,000  
    $ 1,400,000     $ 1,919,525     $ 1,082,435     $ 10,744.69     $ 15,750  

 

The following table shows our Merchant Agreements as of December 31, 2018:

 

Inception Date   Purchase Price     Purchased Amount     Outstanding Balance     Daily Payment     Deferred Finance Fees  
October 18, 2018     550,000       725,800       447,839       3,630.00       5,500  
December 18, 2018     250,000       335,000       243,593       1,675.00       3,912  
    $ 800,000     $ 1,060,800     $ 691,432     $ 5,305.00     $ 9,412