Quarterly report pursuant to Section 13 or 15(d)

Convertible Debt and Other Debt (Tables)

v3.20.2
Convertible Debt and Other Debt (Tables)
 6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
Schedule of Convertible Debt and Outstanding Balances

The specific terms of the convertible notes and outstanding balances as of June 30, 2020 are listed in the tables below.

 

Lender   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  
Vision #1   February 15, 2018 (2)(3)(4)   6 months   $ 100,000     $ 115,000     $ -       5 %     2.50     $ 9,000     $ 17,738  
Auctus   May 17, 2018 (2)   12 months   $ 380,000     $ 166,703     $ 15,200       8 %     2.50     $ 15,200     $ 332,407  
Carlino   June 8, 2018 (1)(4)   6 months   $ 50,000     $ 50,000     $ 2,500       2 %     7.50     $ 2,500     $ 3,271  
GS   June 16, 2018 (2)   9 months   $ 130,000     $ 79,000     $ -       5 %     2.50     $ -     $ -  
GS   June 16, 2018 (2)   6 months   $ 110,000     $ 79,000     $ -       5 %     2.50     $ -     $ -  
Vision #4   June 26, 2018 (1)(2)(3)(4)   3 months   $ 150,000     $ 86,250     $ -       5 %     2.50     $ -     $ 30,862  
Vision #5   July 17, 2018 (1) (2)(3)(4)   3 months   $ 100,000     $ 105,000     $ 15,000       5 %     2.50     $ -     $ 52,897  
BHP   July 19, 2018 (2)   12 months   $ 184,685     $ 150,000     $ 34,685       10 %     2.50     $ -     $ -  
Casale   October 19, 2018 (1)   6 months   $ 100,000     $ 100,000     $ -       5 %     7.50     $ -     $ -  
Vision #6   November 13, 2018 (1) (2)(3)(4)   6 months   $ 200,000     $ 220,000     $ -       5 %     2.50     $ -     $ 168,634  
James Gathard   January 3, 2019 (1)(4)   6 months   $ 50,000     $ 50,000     $ 2,500       24 %     7.50     $ 2,500     $ -  
Eagle Equities LLC   February 21, 2019 (2)   12 months   $ 215,000     $ 215,000     $ -       4 %     2.50     $ 15,000     $ 107,709  
Crossover   February 22, 2019 (2)   9 months   $ 115,563     $ 115,562     $ 8,063       7 %     2.50     $ 2,500     $ -  
Casale   March 18, 2019 (1)   6 months   $ 100,000     $ 100,000     $ -       4 %     7.50     $ -     $ 10,762  
Auctus   June 4, 2019 (2)   9 months   $ 500,000     $ 302,484     $ -       8 %     2.50     $ 40,500     $ 70,631  
LG Capital   April 30, 2019 (2)   12 months   $ 105,000     $ 80,000     $ -       4 %     2.50     $ 5,000     $ 3,286  
LG Capital   June 19, 2019 (2)   12 months   $ 105,000     $ 105,000     $ -       4 %     2.50     $ 5,000     $ 2,646  
Morningview Financial   April 9, 2019 (2)   12 months   $ 118,800     $ 88,800     $ 8,800       4 %     2.50     $ 3,000     $ -  
Vision #9   May 20, 2019 (1) (2)(4)   3 months   $ 100,000     $ 100,000     $ -       5 %     2.50     $ -     $ 13,439  
Vision #10   June 7, 2019 (1) (2)(4)   6 months   $ 125,000     $ 125,000     $ -       5 %     7.50     $ -     $ 18,254  
Eagle Equities LLC   July 1, 2019 (2)   12 months   $ 107,500     $ 107,500     $ -       4 %     2.50     $ 7,500     $ 85,791  
C and B Holdings NY   July 29, 2019 (2)   6 months   $ 250,000     $ 250,000     $ -       4 %     2.50     $ -     $ 36,835  
LG Capital   July 19, 2019 (2)   12 months   $ 115,000     $ 115,000     $ -       4 %     2.50     $ 5,750     $ 15,460  
Odyssey Capital   July 19, 2019 (2)   12 months   $ 130,000     $ 130,000     $ -       6 %     2.50     $ 6,500     $ -  
Morningview Financial   August 6, 2019 (2)   12 months   $ 108,000     $ 108,000     $ -       4 %     2.50     $ 11,000     $ -  
Sheila Bloom-Rosenberg   August 14, 2019 (1)(4)   6 months   $ 50,000     $ 50,000     $ -       2 %     7.50     $ -     $ -  
LG Capital   September 27, 2019 (2)   12 months   $ 78,750     $ 78,750     $ -       4 %     2.50     $ 3,750     $ 13,759  
LG Capital   October 24, 2019 (2)   12 months   $ 78,750     $ 78,750     $ -       4 %     2.50     $ 3,750     $ -  
GW   October 25, 2019   12 months   $ 105,000     $ 105,000     $ -       8 %     2.50     $ 5,000     $ -  
Odyssey Capital   November 1, 2019 (2)   12 months   $ 270,000     $ 270,000     $ -       6 %     2.50     $ 13,500     $ -  
C&B Holdings   October 8, 2019   6 months   $ 100,000     $ 100,000     $ -       4 %     7.50     $ -     $ 5,725  
Clay 11/15/2019 Loan 1   November 15, 2019   12 months   $ 385,000     $ 385,000     $ 35,000       10 %     2.50     $ 35,000     $ 90,917  
Clay 12/4/2019 Loan 2   December 4, 2019   12 months   $ 495,000     $ 495,000     $ 45,000       10 %     2.50     $ 45,000     $ 56,387  
Clay 12/20/2019 Loan 4   December 20, 2019   12 months   $ 275,000     $ 275,000     $ 25,000       10 %     2.50     $ 25,000     $ 40,601  
Clay 1/2/2020 Loan   January 2, 2020   12 months   $ 330,000     $ 330,000     $ 30,000       10 %     2.50     $ 30,000     $ 91,606  
Clay 1/24/2020 Loan   January 24, 2020   12 months   $ 247,500     $ 247,500     $ 22,500       10 %     2.50     $ 22,500     $ 89,707  
Clay 1/29/2020 Loan   January 29, 2020   12 months   $ 363,000     $ 363,000     $ 33,000       10 %     2.50     $ 33,000     $ 297,000  
Clay 2/12/20 Loan   February 12, 2020   12 months   $ 275,000     $ 275,000     $ 25,000       10 %     2.50     $ 25,000     $ 225,000  
Clay 2/21/20 Loan   February 19, 2020   12 months   $ 165,000     $ 165,000     $ 15,000       10 %     2.50     $ 15,000     $ 135,000  
Clay 3/11/20   March 11, 2020   12 months   $ 330,000     $ 330,000     $ 30,000       10 %     2.50     $ 30,000     $ 232,810  
Clay 3/13/20   March 13, 2020   12 months   $ 165,000     $ 165,000     $ 15,000       10 %     2.50     $ 15,000     $ 60,705  
Clay 3/26/20 Loan   March 26, 2020   12 months   $ 111,100     $ 111,100     $ 10,100       10 %     2.50     $ 10,100     $ 90,900  
Clay 4/8/20 Loan   April 8, 2020   12 months   $ 276,100     $ 276,100     $ 25,100       10 %     2.50     $ 25,000     $ 221,654  
Clay 4/17/20 Loan   April 17, 2020   12 months   $ 143,750     $ 143,750     $ 18,750       10 %     2.50     $ -     $ 96,208  
Clay 4/22/20 Loan   April 30, 2020   12 months   $ 546,250     $ 546,250     $ 71,250       10 %     2.50     $ 47,500     $ 427,500  
Clay 5/4/20 Loan   May 7, 2020   12 months   $ 460,000     $ 460,000     $ 60,000       10 %     2.50     $ 40,000     $ 360,000  
Clay 5/11/20 Loan   May 18, 2020   12 months   $ 546,250     $ 546,250     $ 71,250       10 %     2.50     $ 35,500     $ 439,500  
Clay 5/20/20 Loan   June 2, 2020   12 months   $ 902,750     $ 902,750     $ 117,750       10 %     2.50     $ 58,900     $ 708,500  
Geer 6/1/20 Loan   May 29, 2020   12 months   $ 110,000     $ 110,000     $ 10,000       10 %     2.50     $ -     $ -  
Clay 6/12/20 Loan   June 12, 2020   12 months   $ 57,500     $ 57,500     $ 7,500       10 %     2.50     $ 5,000     $ 45,000  
Clay 6/22/20 Loan   June 22, 2020   12 months   $ 138,000     $ 138,000     $ 18,000       10 %     2.50     $ 12,000     $ 108,000  
                    $ 10,147,999     $ 771,948                     $ 666,450     $ 4,807,101  

 

  (1) The Note is past due. The Company and the lender are negotiating in good faith to extend the loan.
  (2) As of June 30, 2020 lender entered into a Standstill and Forbearance agreement (as described below). Loan is convertible at $2.50 until the expiration of the agreement.
  (3) Interest was capitalized and added to outstanding principal.
  (4) During the six months ended June 30, 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     5,435,950  
Deferred financing cost     (1,013,350 )
Beneficial conversion feature on convertible note     (982,097 )
Debt discount from warrants issued with debt     (2,705,996 )
Payments     (1,257,250 )
Conversion of debt into equity     (771,266 )
Accretion of interest and amortization of debt discount to interest expense     1,397,121  
Balance at June 30,     6,224,450  
Less: current portion     6,224,450  
Convertible debt, long-term portion   $ –  
Schedule of Merchant Agreements

The following table shows our Merchant Agreements as of June 30, 2020:

 

Inception Date   Purchase Price     Purchased Amount     Outstanding Balance     Daily Payment Rate     Deferred
Finance Fees		  
August 5, 2019   $ 600,000     $ 816,000     $ 174,943     $ 4,533     $ 6,000  
August 19, 2019     350,000       479,500       245,355       2,664       3,000  
August 23, 2019     175,000       239,750       87,192       1,410       1,750  
September 19, 2019     275,000       384,275       183,348       2,138       5,000  
    $ 1,400,000     $ 1,919,525     $ 690,838     $ 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