Quarterly report pursuant to Section 13 or 15(d)

Notes Payable

v3.21.2
Notes Payable
6 Months Ended
Jun. 30, 2021
Debt Disclosure [Abstract]  
Notes Payable

Note 6- Notes Payable

 

Notes Payable

 

During the six months ended June 30, 2021, the Company issued four (4) fixed rate promissory notes totaling $325,000 for funding of $325,000 with original terms of twelve months and interest rates of 15%. The holders of the promissory notes can convert the outstanding unpaid principal and accrued interest at a fixed conversion rate, subject to standard anti-dilution features.

 

During the six months ended June 30, 2021, the Company amended the terms of two of its promissory notes to accelerate the conversion feature and amend the conversion price of the instruments. The Company recorded the modification in accordance with ASC 470-50 Debt-Modifications and Extinguishments and recorded $58,407 as loss from debt extinguishment in the condensed consolidated statements of operations.

 

During the six months ended June 30, 2021, the Company settled one of its promissory note by issuing 1,515,152 restricted shares of the Company’s common stock with a fifteen percent (15%) make-whole provision. The Company recorded a gain on debt extinguishment of approximately $128,000.

 

 

Endonovo Therapeutics, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (continued)

 

During the six months ended June 30, 2021, the Company paid $8,000 in cash for one of its fixed rate promissory notes.

 

During the six months ended June 30, 2021, the Company converted $282,850 in principal and $91,485 in accrued but unpaid interest into 21,490,651 shares of common stock.

 

The gross amount of all convertible notes with variable conversion rates outstanding at June 30, 2021 is $4,770,926, of which $2,660,476 are past maturity.

 

Notes payable to a former related party in the aggregate amount of $121,000 were outstanding at June 30, 2021, which are past maturity date. The notes bear interest between 10% and 12% per annum. During the six months ended June 30, 2021, the Company paid $22,000 principal to this former related party.

 

As of June 30, 2021, fixed rate notes payable outstanding totaled $1,212,747, of which $160,747 is past maturity.

 

    June 30,
2021
    December 31,
2020
 
             
Notes payable at beginning of period   $ 6,835,196     $ 6,874,795  
Notes payable issued     325,000       1,364,611  
Liquidated damages     -       452,095  
Note modification     -       25,190  
Loan fees added to note payable     -       120,389  
Repayments of notes payable in cash     (30,000 )     (22,000 )
Settlements on note payable     (117,770 )     (697,253 )
Less amounts converted to stock     (282,850 )     (1,282,631 )
Notes payable at end of period     6,729,576       6,835,196  
Less debt discount     (70,236 )     (201,157 )
Note payable, net   $ 6,659,340     $ 6,634,039  
                 
Notes payable issued to a former related party   $ 121,000     $ 143,000  
Notes payable issued to non-related parties   $ 6,538,340     $ 6,491,039  

 

The maturity dates on the notes-payable are as follows:

 

    Notes to        
12 months ending,   Former Related party     Non-related parties     Total  
                   
Past due   $ 121,000     $ 3,446,126     $ 3,567,126  
June 30, 2022     -       3,162,450       3,162,450  
    $ 121,000     $ 6,608,576     $ 6,729,576  

 

 

Endonovo Therapeutics, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements (continued)