Notes Payable and Long Term Loan
|6 Months Ended|
Jun. 30, 2017
|Debt Disclosure [Abstract]|
|Notes Payable and Long Term Loan||
Note 3 - Notes Payable and Long Term Loan
During the six months ended June 30, 2017, the Company issued six Convertible Notes (“Variable Notes”) totaling $928,750 with original terms ranging from eight months to one year with interest rates equal to 10%, and a variable conversion rate with a discounts of 30% of the Company’s common stock based on the terms included in the Variable Notes. The Variable Notes contain a prepayment option, which enables the Company to prepay the note subsequent to issuance at a premium of 125%.
During the six months ended June 30, 2017, an investor in the Company’s Variable Notes purchased from another holder of the Company’s Variable Notes an aggregate of $720,000 principal and $33,028 of accrued interest with terms that extended the maturities to a one-year and increased the interest rate from 6% to 10%. As a result of this modification, the Company recognized a gain on debt extinguishment of $2,556,653 during the six months ended June 30, 2017.
The gross amount of all Variable Notes outstanding at June 30, 2017 is $2,150,278. Of this amount outstanding, $66,000 of the Variable Debentures were past maturity.
As of June 30, 2017, other notes payable outstanding totaled $1,144,903, all of which are past maturity.
The maturity dates on the notes payable are as follows:
Long Term Loan
The Company has financed the purchase of an automobile. The maturity dates on the loan are as follows:
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://www.xbrl.org/2003/role/presentationRef