Annual report pursuant to Section 13 and 15(d)

Convertible Debt and Other Debt (Tables)

v3.3.1.900
Convertible Debt and Other Debt (Tables)
 12 Months Ended
Dec. 31, 2015
Debt Disclosure [Abstract]  
Schedule of Convertible Debts and Outstanding Balances

The specific terms of the $5.4 million PIPE convertible debentures and outstanding balances as of December 31, 2015 are listed in the tables below.

 

Fixed Rate Convertible Notes                          
Inception Date   Term     Loan Amount     Outstanding Balance     Original Issue Discount           Interest Rate           Deferred Finance Fees     Discount related to Fair value of conversion feature and warrants     Prepayment Penalty  
July 22, 2015     24 months     $ 2,180,000     $ 2,180,000     $ 218,000       1       10 %           $ 388,532     $ 2,163,074       20 %
September 25, 2015     24 months       1,100,000       1,100,000       110,000       1       10 %     2       185,956       1,022,052       20 %
October 2, 2015     24 months       150,000       150,000       15,000       1       10 %     2       26,345       140,832       20 %
October 6, 2015     24 months       30,000       30,000       3,000       1       10 %     2       5,168       26,721       20 %
October 14, 2015     24 months       50,000       50,000       5,000       1       10 %     2       8,954       49,377       20 %
November 2, 2015     24 months       250,000       250,000       25,000       1       10 %     2       43,079       222,723       20 %
November 10, 2015     24 months       50,000       50,000       5,000       1       10 %     2       8,790       46,984       20 %
November 12, 2015     24 months       215,000       215,000       21,500       1       10 %     2       38,518       212,399       20 %
November 20, 2015     24 months       200,000       200,000       20,000       1       10 %     2       37,185       200,000       20 %
December 4, 2015     24 months       170,000       170,000       17,000       1       10 %     2       37,352       170,000       20 %
December 11, 2015     24 months       360,000       360,000       36,000       1       10 %     2       75,449       360,000       20 %
December 18, 2015     24 months       55,000       55,000       5,500       1       10 %     2       11,714       55,000       20 %
December 31, 2015     24 months       100,000       100,000       10,000       1       10 %     2       20,634       100,000       20 %
            $ 4,910,000     $ 4,910,000     $ 491,000                             $ 887,676     $ 4,769,162          

 

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

2 The annual interest starts accruing in the second year.

  

As of December 31, 2015, the Company also had an outstanding convertible note with a third party amounting to $100,000. The note is convertible at a fixed rate of $0.25 and matures in July 2016.

 

Variable Rate Convertible Notes    
Inception Date   Term     Loan Amount         Interest Rate     Fees     Fair value of conversion feature     Prepayment Penalty     Discount to VWAP   Share reserve requirement    
December 4, 2013     12 months     $ 223,000     *      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     *     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     *     4 %     7,763       145,527      20   %         -    
May 20, 2015     12 months       100,000     *      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     *     4 %     6,000       108,297      19-33   %   35% of 15 days     3,101,000    
June 24, 2015     24 months       50,000     *      4 %     -       54,511      19-33   %   35% of 10 days     1,000,000    
July 2, 2015     12 months       52,500     *      4 %     2,500       54,297      19-33   %   35% of 15 days     1,500,000    
July 2, 2015     12 months       52,500     *      4 %     2,500       54,297      19-33   %   35% of 15 days     1,000,000    
            $ 2,105,814                 $ 105,776     $ 2,200,727                   9,601,000    
                                                                       

  

 * The loans above either had outstanding balances as of December 31, 2014 or were issued in 2015 and subsequently paid off in 2015.
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:

 

    2015
Balance at January 1,   $ 1,004,513  
Issuance of convertible debt, face value     7,287,317  
Original issue discount     (567,780 )
Debt discount from derivative liabilities (embedded conversion option and warrants)     (6,433,054 )
Deferred financing fees     (887,676 )
Repayment of convertible debt     (2,653,990 )
Conversion of convertible debt into common stock     (382,054 )
Fees added to principal debt     84,000  
Settlement of prepayment penalty     (96,023 )
Amortization of debt discount to interest expense through December 31,     2,922,089  
Balance at December 31,     277,342  
Less: current portion     100,000  
Convertible debt, long-term portion   $ 177,342