Quarterly report pursuant to Section 13 or 15(d)

Convertible Debt and Other Debt (Tables)

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

The specific terms of the convertible notes and outstanding balances as of September 30, 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		  
May 17, 2018 (2)   12 months   $ 380,000     $ 166,703     $ 15,200       8 %   $ 2.50     $ 15,200     $ 332,407  
June 8, 2018 (1) (4)   6 months   $ 50,000     $ 50,000     $ 2,500       2 %   $ 7.50     $ 2,500     $ 3,271  
June 16, 2018 (2)   9 months   $ 110,000     $ 79,000     $ -       5 %   $ 2.50     $ -     $ -  
July 17, 2018 (1) (3) (4)   3 months   $ 100,000     $ 56,250     $ 15,000       5 %   $ 2.50     $ -     $ 52,897  
October 19, 2018 (1)   6 months   $ 100,000     $ 100,000     $ -       5 %   $ 7.50     $ -     $ -  
November 13, 2018 (1) (3) (4)   6 months   $ 200,000     $ 220,000     $ -       5 %   $ 2.50     $ -     $ 168,634  
January 3, 2019 (4)   6 months   $ 50,000     $ 50,000     $ 2,500       24 %   $ 7.50     $ 2,500     $ -  
February 21, 2019 (2)   12 months   $ 215,000     $ 215,000     $ -       4 %   $ 2.50     $ 15,000     $ 107,709  
March 18, 2019 (1)   6 months   $ 100,000     $ 100,000     $ -       4 %   $ 7.50     $ -     $ 10,762  
June 4, 2019 (2)   9 months   $ 500,000     $ 302,484     $ -       8 %   $ 2.50     $ 40,500     $ 70,631  
June 19, 2019 (2)   12 months   $ 105,000     $ 105,000     $ -       4 %   $ 2.50     $ 5,000     $ 2,646  
May 20, 2019 (1) (4)   3 months   $ 100,000     $ 100,000     $ -       5 %   $ 2.50     $ -     $ 13,439  
June 7, 2019 (1) (4)   6 months   $ 125,000     $ 110,000     $ -       5 %   $ 7.50     $ -     $ 18,254  
July 1, 2019 (2)   12 months   $ 107,500     $ 107,500     $ -       4 %   $ 2.50     $ 7,500     $ 85,791  
July 19, 2019 (2)   12 months   $ 115,000     $ 115,000     $ -       4 %   $ 2.50     $ 5,750     $ 15,460  
July 19, 2019 (2)   12 months   $ 130,000     $ 130,000     $ -       6 %   $ 2.50     $ 6,500     $ -  
August 14, 2019 (1) (4)   6 months   $ 50,000     $ 50,000     $ -       2 %   $ 7.50     $ -     $ -  
September 27,2019 (2)   12 months   $ 78,750     $ 78,750     $ -       4 %   $ 2.50     $ 3,750     $ 13,759  
October 24, 2019 (2)   12 months   $ 78,750     $ 78,750     $ -       4 %   $ 2.50     $ 3,750     $ -  
November 1, 2019 (2)   12 months   $ 270,000     $ 270,000     $ -       6 %   $ 2.50     $ 13,500     $ -  
November 15, 2019   12 months   $ 385,000     $ 385,000     $ 35,000       10 %   $ 2.50     $ 35,000     $ 90,917  
December 4, 2019   12 months   $ 495,000     $ 495,000     $ 45,000       10 %   $ 2.50     $ 45,000     $ 56,387  
December 20, 2019   12 months   $ 275,000     $ 275,000     $ 25,000       10 %   $ 2.50     $ 25,000     $ 40,601  
January 2, 2020   12 months   $ 330,000     $ 330,000     $ 30,000       10 %   $ 2.50     $ 30,000     $ 91,606  
January 24, 2020   12 months   $ 247,500     $ 247,500     $ 22,500       10 %   $ 2.50     $ 22,500     $ 89,707  
January 29, 2020   12 months   $ 363,000     $ 363,000     $ 33,000       10 %   $ 2.50     $ 33,000     $ 297,000  
February 12, 2020   12 months   $ 275,000     $ 275,000     $ 25,000       10 %   $ 2.50     $ 25,000     $ 225,000  
February 19, 2020   12 months   $ 165,000     $ 165,000     $ 15,000       10 %   $ 2.50     $ 15,000     $ 135,000  
March 11, 2020   12 months   $ 330,000     $ 330,000     $ 30,000       10 %   $ 2.50     $ 30,000     $ 232,810  
March 13, 2020   12 months   $ 165,000     $ 165,000     $ 15,000       10 %   $ 2.50     $ 15,000     $ 60,705  
March 26, 2020   12 months   $ 111,100     $ 111,100     $ 10,100       10 %   $ 2.50     $ 10,100     $ 90,900  
April 8, 2020   12 months   $ 276,100     $ 276,100     $ 25,100       10 %   $ 2.50     $ 25,000     $ 221,654  
April 17, 2020   12 months   $ 143,750     $ 143,750     $ 18,750       10 %   $ 2.50     $ -     $ 96,208  
April 30, 2020   12 months   $ 546,250     $ 546,250     $ 71,250       10 %   $ 2.50     $ 47,500     $ 427,500  
May 6, 2020   12 months   $ 460,000     $ 460,000     $ 60,000       10 %   $ 2.50     $ 40,000     $ 360,000  
May 18, 2020   12 months   $ 546,250     $ 546,250     $ 71,250       10 %   $ 2.50     $ 35,500     $ 439,500  
June 2, 2020   12 months   $ 902,750     $ 902,750     $ 117,750       10 %   $ 2.50     $ 58,900     $ 708,500  
June 12, 2020   12 months   $ 57,500     $ 57,500     $ 7,500       10 %   $ 2.50     $ 5,000     $ 45,000  
June 22, 2020   12 months   $ 138,000     $ 138,000     $ 18,000       10 %   $ 2.50     $ 12,000     $ 108,000  
July 7, 2020   12 months   $ 586,500     $ 586,500     $ 76,500       10 %   $ 2.50     $ 51,000     $ 400,234  
July 17, 2020   12 months   $ 362,250     $ 362,250     $ 47,250       10 %   $ 2.50     $ 31,500     $ 185,698  
July 29, 2020   12 months   $ 345,000     $ 345,000     $ 45,000       10 %   $ 2.50     $ 30,000     $ 241,245  
July 21, 2020 (5)   12 months   $ 115,000     $ 115,000     $ 15,000       10 %   $ 2.50     $ 10,000     $ 24,875  
August 14, 2020   12 months   $ 762,450     $ 762,450     $ 99,450       10 %   $ 2.50     $ 66,300     $ 580,124  
September 10, 2020   12 months   $ 391,000     $ 391,000     $ 51,000       10 %   $ 2.50     $ 34,000     $ 231,043  
September 21, 2020 (5)   12 months   $ 345,000     $ 345,000     $ 45,000       10 %   $ 2.50     $ 30,000     $ 66,375  
September 23, 2020 (5)   12 months   $ 115,000     $ 115,000     $ 15,000       10 %   $ 2.50     $ 10,000     $ 20,500  
September 25, 2020   12 months   $ 115,000     $ 115,000     $ 15,000       10 %   $ 2.50     $ -     $ 19,125  
                                                             
                $ 11,833,837     $ 1,119,600                     $ 893,750     $ 6,481,874  

 

  (1) The Note is past due. The Company and the lender are negotiating in good faith to extend the loan.
  (2) As of September 30, 2020 the Company and lender have verbally agreed to the extension of the Standstill and Forbearance agreements (as described below). Loan is convertible at $2.50 as of September 30, 2020.
  (3) Interest was capitalized and added to outstanding principal.
  (4) During the nine months ended September 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 more than one other variable rate lender converted at a variable rate.
  (5) The Company has agreed to issue shares of its common stock to lenders if their notes are not repaid by a defined date.

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     8,688,150  
Deferred financing cost     (1,710,350 )
Beneficial conversion feature on convertible note     (1,353,694 )
Debt discount from shares and warrants issued with debt     (4,156,442 )
Payments     (1,972,007 )
Conversion of debt into equity     (1,622,872 )
Accretion of interest and amortization of debt discount to interest expense     3,100,990  
Balance at September 30,     7,095,113  
Less: current portion     7,095,113  
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     $ 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