Quarterly report pursuant to Section 13 or 15(d)

Convertible Debt and Other Debt (Tables)

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Convertible Debt and Other Debt (Tables)
 9 Months Ended
Sep. 30, 2015
Debt Disclosure [Abstract]  
Schedule of Convertible Debts and Outstanding Balances

The specific terms of the convertible debts and outstanding balances as of September 30, 2015 are listed in the tables below.

 

Variable Rate Convertible Notes                                        
Inception Date   Term     Loan Amount     Outstanding
Balance as of
September 30, 2015 		    Outstanding
Balance as of
November 10, 2015 		    Interest Rate     Fees     Fair value of conversion feature     Prepayment Penalty     Discount to VWAP   Share reserve requirement  
December 4, 2013     12 months     $ 223,000     $ 105,760     $ -       4 %   $ 10,000     $ 59,903       20 %         -  
February 2, 2015     12 months       100,000       -       - *     4 %     5,000       62,219       19-33 %         -  
February 2, 2015     12 months       120,000       -       - *     4 %     5,000       74,663       19-33 %         -  
February 22, 2015     six months       100,000       -       - *     4 %     -       61,597       19-33 %         -  
February 25, 2015     12 months       112,500       -       - *     8 %     4,000       312,847       19-33 %         -  
March 4, 2015     12 months       52,500       -       - *     4 %     2,500       53,213       19-38 %         -  
March 6, 2015     12 months       236,250       -       - *     2 %     33,900       212,918       19-35 %         -  
March 17, 2015     24 months       50,000       -       - *     4 %     -       64,382       19-33 %         -  
March 20, 2015     12 months       25,000       -       - *     4 %     -       25,077       19-33 %         -  
March 26, 2015     12 months       150,000       -       - *     6 %     2,000       164,501       19-37.5 %         -  
March 27, 2015     12 months       52,500       -       - *     4 %     2,500       57,502       19-38  %         -  
March 27, 2015     12 months       100,000       -       - *     8 %     8,000       154,359       19-38  %         -  
April 1, 2015     12 months       100,000       138,046       - *     8 %     -       155,793       25-35  %   40% of 10 days     -  
April 20, 2015     12 months       81,250       -       - *     4 %     6,563       117,679       20 %         -  
April 28, 2015     12 months       54,050       -       - *     9 %     4,050       35,143       20 %         -  
May 12, 2015     12 months       107,764       130,394       130,501 *     4 %     7,763       145,527       20 %         -  
May 20, 2015     12 months       100,000       135,000       135,000       4 %     -       92,715       9.5-33 %   45% of 10 days     3,000,000  
May 26, 2015     12 months       60,000       -       - *     8 %     3,500       79,287       10-35 %         -  
June 23, 2015     12 months       126,000       170,100       170,100       4 %     6,000       108,297       19-33 %   35% of 15 days     3,101,000  
June 24, 2015     24 months       50,000       67,500       67,500       4 %     -       54,511       19-33 %   35% of 10 days     1,000,000  
July 2, 2015     12 months       52,500       70,875       70,875       4 %     2,500       54,297       19-33 %   35% of 15 days     1,500,000  
July 2, 2015     12 months       52,500       67,500       67,500       4 %     2,500       54,297       19-33 %   35% of 15 days     1,000,000  
            $ 2,105,814     $ 845,175     $ 470,975             $ 105,776     $ 2,200,727                   9,601,000  

 

The loans above with outstanding balances of zero were outstanding as of December 31, 2014 and were paid off during the nine months ended September 30, 2015.

 

Fixed Rate Convertible Notes                          
Inception Date   Term     Loan Amount     Outstanding Balance   Original Issue Discount     Interest Rate   Fees     Fair value of conversion feature     Prepayment Penalty  
July 22, 2015     24 months     $ 2,180,000     $ 2,180,000     $218,000 1   10 %2 $ 339,930     $ 1,360,416       20 %
September 25, 2015     24 months       1,100,000       1,100,000     110,000 1   10 %2   185,956       642,271       20 %
            $ 3,280,000     $ 3,280,000   $ 328,000         $ 525,886     $ 2,002,687          

 

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

2 The annual interest starts accruing in the second year.
Summary of Changes in Convertible Debt, Net of Unamortized Discount

The following table provides a summary of the changes in convertible debt, net of unamortized discount, during 2015:

 

Balance at December 31, 2014   $ 1,004,513  
Issuance of convertible debt, face value     5,014,021  
Discount on embedded conversion option at issuance     (3,667,020 )
Discount on fair value of warrant liability at issuance     (1,182,409 )
Repayment of convertible debt     (2,107,065 )
Conversion of convertible debt into common stock     (328,000 )
Payment of prepayment penalty     (351,193 )
Accretion of interest and amortization of debt discount to interest expense through September 30, 2015     2,326,296  
Balance at September 30, 2015     709,143  
Less: current portion     296,818  
Convertible debt, long-term portion   $ 412,325