Quarterly report pursuant to Section 13 or 15(d)

Convertible Debt and Other Debt (Tables)

v3.20.2
Convertible Debt and Other Debt (Tables)
 3 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Schedule of Convertible Debts and Outstanding Balances

The specific terms of the convertible notes and outstanding balances as of March 31, 2020 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)   6 months   $ 100,000     $ 115,000     $ -       5 %     (3) (6) 2.5     $ 9,000     $ 17,738  
May 17, 2018   12 months   $ 380,000     $ 166,703     $ 15,200       8 %     (3) 2.5     $ 15,200     $ 332,407  
May 30, 2018 (1)   2 months   $ 150,000     $ 75,000     $ -       4 %     7.5     $ -     $ 6,870  
June 8, 2018 (1)   6 months   $ 50,000     $ 50,000     $ 2,500       2 %     (6) 7.5     $ 2,500     $ 3,271  
June 12, 2018   6 months   $ 100,000     $ 100,000     $ -       2.5 %     (3) (6) 7.5     $ 5,000     $ -  
June 16, 2018   9 months   $ 130,000     $ 79,000     $ -       5 %     (3) 2.5     $ -     $ -  
June 16, 2018   6 months   $ 110,000     $ 79,000     $ -       5 %     (3) 2.5     $ -     $ -  
June 26, 2018 (2)   3 months   $ 150,000     $ 86,250     $ -       5 %     (3) (6) 2.5     $ -     $ 30,862  
June 28, 2018   6 months   $ 50,000     $ 50,000     $ -       2.5 %     (3) (6) 7.5     $ -     $ 10,518  
July 17, 2018 (2)   3 months   $ 100,000     $ 105,000     $ 15,000       5 %     (3) (6) 2.5     $ -     $ 52,897  
July 19, 2018   12 months   $ 184,685     $ 150,000     $ 34,685       10 %     (3) 2.5     $ -     $ -  
October 19, 2018 (1)   6 months   $ 100,000     $ 100,000     $ -       5 %     7.5     $ -     $ -  
November 13, 2018 (2)   6 months   $ 200,000     $ 220,000     $ -       5 %     (3) (6) 2.5     $ -     $ 168,634  
January 2, 2019   12 months   $ 125,000     $ 97,000     $ -       4 %     (3) 2.5     $ 6,250     $ 89,120  
January 3, 2019   6 months   $ 50,000     $ 50,000     $ 2,500       24 %     (6) 7.5     $ 2,500     $ -  
February 21, 2019   12 months   $ 215,000     $ 215,000     $ -       4 %     (3) 2.5     $ 15,000     $ 107,709  
February 22, 2019   9 months   $ 115,563     $ 115,562     $ 8,063       7 %     (3) 2.5     $ 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) 2.5     $ 40,500     $ 70,631  
May 28, 2019   12 months   $ 115,500     $ 115,500     $ 5,500       8 %     (3) 2.5     $ -     $ 33,531  
April 30, 2019   12 months   $ 105,000     $ 105,000     $ -       4 %     (3) 2.5     $ 5,000     $ 3,286  
June 19, 2019   12 months   $ 105,000     $ 105,000     $ -       4 %     (3) 2.5     $ 5,000     $ 2,646  
April 9, 2019   12 months   $ 118,800     $ 88,800     $ 8,800       4 %     (3) 2.5     $ 3,000     $ -  
April 10, 2019 (2)   3 months   $ 75,000     $ 86,250     $ -       5 %     (3) (6) 2.5     $ -     $ 61,091  
May 20, 2019   3 months   $ 100,000     $ 100,000     $ -       5 %     (3) (6) 2.5     $ -     $ 13,439  
June 7, 2019   6 months   $ 125,000     $ 125,000     $ -       5 %     (3) (6) 7.5     $ -     $ 18,254  
July 1, 2019   12 months   $ 107,500     $ 107,500     $ -       4 %     (3) 2.5     $ 7,500     $ 85,791  
July 8, 2019 (5)   12 months   $ 65,000     $ 65,000     $ -       5 %     (3) 2.5     $ 8,500     $ 4,376  
July 29, 2019   6 months   $ 250,000     $ 250,000     $ -       4 %     (3) 2.5     $ -     $ 36,835  
July 19, 2019   12 months   $ 115,000     $ 115,000     $ -       4 %     (3) 2.5     $ 5,750     $ 15,460  
July 19, 2019   12 months   $ 130,000     $ 130,000     $ -       6 %     (3) 2.5     $ 6,500     $ -  
August 6, 2019   12 months   $ 108,000     $ 108,000     $ -       4 %     (3) 2.5     $ 11,000     $ -  
August 14, 2019 (1)   6 months   $ 50,000     $ 50,000     $ -       2 %     (6) 7.5     $ -     $ -  
September 11, 2019 (5)   12 months   $ 50,000     $ 50,000     $ -       5 %     (3) 2.5     $ 6,500     $ 3,823  
September 27, 2019   12 months   $ 78,750     $ 78,750     $ -       4 %     (3) 2.5     $ 3,750     $ 13,759  
October 24, 2019   12 months   $ 103,000     $ 103,000     $ -       8 %     (4) 2.5     $ 3,000     $ -  
October 24, 2019   12 months   $ 78,750     $ 78,750     $ -       4 %     (3) 2.5     $ 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) 2.5     $ 13,500     $ -  
October 8, 2019   6 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 4, 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  
January 2, 2020   12 months   $ 330,000     $ 330,000     $ 30,000       10 %     2.5     $ 30,000     $ 91,606  
January 23, 2020   12 months   $ 247,500     $ 247,500     $ 22,500       10 %     2.5     $ 22,500     $ 89,707  
January 29, 2020   12 months   $ 363,000     $ 363,000     $ 33,000       10 %     2.5     $ 33,000     $ 297,000  
February 12, 2020   12 months   $ 275,000     $ 275,000     $ 25,000       10 %     2.5     $ 25,000     $ 225,000  
February 19, 2020   12 months   $ 165,000     $ 165,000     $ 15,000       10 %     2.5     $ 15,000     $ 135,000  
March 5, 2020   12 months   $ 115,000     $ 115,000     $ 15,000       10 %     2.5     $ 15,000     $ 46,231  
March 11, 2020   12 months   $ 330,000     $ 330,000     $ 30,000       10 %     2.5     $ 30,000     $ 232,810  
March 13, 2020   12 months   $ 165,000     $ 165,000     $ 15,000       10 %     2.5     $ 15,000     $ 60,705  
March 13, 2020   12 months   $ 28,750     $ 28,750     $ 3,750       10 %     2.5       -     $ 7,825  
March 13, 2020   12 months   $ 125,000     $ 125,000     $ 18,750       10 %     2.5     $ 12,500     $ 29,737  
March 26, 2020   12 months   $ 111,100     $ 111,100     $ 10,100       10 %     2.5     $ 10,100     $ 90,900  
                $ 8,450,415     $ 415,348                     $ 511,800     $ 2,699,825  

 

  (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 March 31, 2020 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 March 31, 2020.
  (5) The Company’s Chief Executive Officer signed a Confession of Judgement with lenders representing his personal guarantee.
  (6) During the quarter ended March 31, 2020 the Company entered into Rate Modification Agreements with these lenders. In these agreements five lenders agreed to reduce their interest rate and were granted the right to convert loans using a variable conversion price if other variable rate lenders converted at a variable rate.

Summary of Changes in Convertible Debt, Net of Unamortized Discounts

The following table provides a summary of the changes in convertible debt, net of unamortized discounts, during 2020:

 

    2020  
Balance at January 1,   $ 6,121,338  
Issuance of convertible debt, face value     2,255,350  
Deferred financing cost     (389,850 )
Beneficial conversion feature on convertible note     (404,608 )
Debt discount from warrants issued with debt     (995,615 )
Payments     (520,500 )
Conversion of debt into equity     (25,000 )
Accretion of interest and amortization of debt discount to interest expense     565,985  
Balance at March 31,     6,607,100  
Less: current portion     6,607,100  
Convertible debt, long-term portion   $ –  

Schedule of Merchant Agreements

The following table shows our Merchant Agreements as of March 31, 2020:

 

Inception Date   Purchase Price     Purchased Amount     Outstanding Balance     Daily Payment rate     Deferred
Finance Fees		  
August 5, 2019   $ 600,000     $ 816,000     $ 384,621     $ 4,533     $ 6,000  
August 19, 2019     350,000       479,500       273,510       2,664       3,000  
August 23, 2019     175,000       239,750       117,597       1,410       1,750  
September 19, 2019     275,000       384,275       263,855       2,138       5,000  
    $ 1,400,000     $ 1,919,525     $ 1,039,583     $ 10,745     $ 15,750  

 

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     $ 6,000  
August 19, 2019     350,000       479,500       272,315       2,664       3,000  
August 23, 2019     175,000       239,750       132,284       1,410       1,750  
September 19, 2019     275,000       384,275       256,812       2,138       5,000  
    $ 1,400,000     $ 1,919,525     $ 1,082,435     $ 10,745     $ 15,750