| Notes payable |
| |
|
December
31, |
|
| |
|
2016 |
|
|
2015 |
|
| |
|
|
|
|
|
|
| Promissory
note dated July 25, 2014 issued to an accredited investor, which matured July 24, 2015 and bore interest at a rate of 12%
per annum. The holder of the note extended the maturity to July 25, 2017. Principal and interest may be converted into common
stock based on the average trading price of the ten days prior to maturity at the holders option. In November 2016,
the holder of the note exchanged the note with another accredited investor. |
|
$ |
|
|
|
$ |
150,000 |
|
| Unsecured
promissory demand notes issued to an accredited investor, which bears interest at a rate of 4% per annum. Holder may elect
to convert into common stock at $0.75 per share. In 2015, the investor exchanged the notes from other accredited investors.
In October 2016, the holder of the note converted some of the debt and accrued interest into common stock. |
|
|
64,324 |
|
|
|
114,306 |
|
| Convertible
promissory note dated April 7, 2015 issued to accredited investors, which matures October 7, 2016 and bears interest at a
rate of 12% per annum. The conversion price in effect is $0.1303, subject to adjustment. The remaining balance of the note
and accrued interest was converted into common stock in January 2016. |
|
|
|
|
|
|
170,856 |
|
| 5%
original issue discount senior secured convertible promissory note dated May 5, 2014 issued to accredited investors, which
matured November 5, 2015, and bore interest at a rate of 12% per annum. The fixed conversion price in effect was set at 90%
of the 20-day volume weighted average price (VWAP) of our common stock on February 5, 2014, or $0.30753 per
share. In 2015, the holder of the note converted some of the debt and accrued interest into common stock. The remaining balance
of the note and accrued interest was converted into common stock in March 2016. |
|
|
|
|
|
|
96,491 |
|
| Convertible
promissory note dated May 13, 2015 issued to accredited investors, which matures November 13, 2016 and bears interest at a
rate of 12% per annum. The conversion price in effect is $0.1211, subject to adjustment. The remaining balance of the note
and accrued interest was converted into common stock in January 2016. |
|
|
|
|
|
|
170,783 |
|
| Convertible
promissory note dated December 14, 2015, issued to accredited investors, which matured December 13, 2016 and bears interest
at a rate of 12% per annum. The holder of the note extended the maturity to December 13, 2017. The conversion price in effect
is $0.1211, subject to adjustment. |
|
|
500,000 |
|
|
|
214,927 |
|
| Senior
convertible promissory note dated October 28, 2016, issued to accredited investors, which matures April 28, 2018 and bears
interest at a rate of 1% per annum. The conversion price in effect is 90% of the average of the lowest three (3) VWAPs for
the five (5) consecutive trading days prior to the conversion date. |
|
|
102,582 |
|
|
|
|
|
| Senior
convertible promissory note dated November 1, 2016, issued to accredited investors, which matures May 1, 2018 and bears interest
at a rate of 12% per annum. The conversion price in effect is $0.35, subject to adjustment. |
|
|
31,615 |
|
|
|
|
|
| Senior
convertible promissory note dated December 16, 2016, issued to accredited investors, which matures June 16, 2018 and bears
interest at a rate of 12% per annum. The conversion price in effect is $0.27, subject to adjustment. |
|
|
1,220,155 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Total
Debt |
|
|
1,918,676 |
|
|
|
917,363 |
|
| |
|
|
|
|
|
|
|
|
| Less
Short-Term Portion |
|
|
564,324 |
|
|
|
917,363 |
|
| |
|
|
|
|
|
|
|
|
| Long-Term
Portion |
|
$ |
1,354,352 |
|
|
$ |
|
|
|
| Schedule of Extinguishment of Debt |
| |
|
Year Ended December 31, |
|
| |
|
2016 |
|
|
2015 |
|
|
2014 |
|
| Fair market value of common stock issued upon conversion |
|
$ |
18,887,399 |
|
|
$ |
1,493,659 |
|
|
$ |
- |
|
| Principal amount of debt converted |
|
|
(13,324,973 |
) |
|
|
(900,000 |
) |
|
|
- |
|
| Accrued interest converted |
|
|
(233,415 |
) |
|
|
(108,000 |
) |
|
|
- |
|
| Fair value of derivative at conversion date |
|
|
(10,361,100 |
) |
|
|
(374,600 |
) |
|
|
- |
|
| Debt discount value at conversion date |
|
|
10,414,902 |
|
|
|
508,385 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Loss on Extinguishment of Debt |
|
$ |
5,382,813 |
|
|
$ |
619,444 |
|
|
$ |
- |
|
|