| Notes payable |
| |
|
September
30,
2017
|
|
|
December
31,
2016
|
|
| Unsecured
promissory demand notes issued to an accredited investor, which bear interest at a rate of 4% per annum. Holder may elect
to convert into common stock at $0.75 per share. The balance of the note and accrued interest was converted into common stock
in April 2017. |
|
$ |
- |
|
|
$ |
64,324 |
|
| 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 is $0.1211,
subject to adjustment. The balance of the note and accrued interest was converted into common stock in July 2017. |
|
|
- |
|
|
|
500,000 |
|
| 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 is 90% of the average of the lowest three (3) VWAPs for the five
(5) consecutive trading days prior to the conversion date. The balance of the note and accrued interest was converted into
common stock in January 2017. |
|
|
- |
|
|
|
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 is $0.35, subject to adjustment. The balance of the note and accrued interest
was converted into common stock in July 2017. |
|
|
- |
|
|
|
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 is $0.27, subject to adjustment. The balance of the note and accrued
interest was converted into common stock in May 2017. |
|
|
- |
|
|
|
1,220,155 |
|
| Senior
convertible promissory note dated February 22, 2017, issued to accredited investors, which matures August 22, 2018 and bears
interest at a rate of 12% per annum. The conversion price is $0.25, subject to adjustment. The balance of the note and accrued
interest was converted into common stock in June 2017. |
|
|
- |
|
|
|
- |
|
| Senior
convertible promissory note dated June 23, 2017, issued to accredited investors, which matures December 23, 2018 and bears
interest at a rate of 12% per annum. The conversion price is $0.1362, subject to adjustment. |
|
|
335,119 |
|
|
|
- |
|
| Senior
convertible promissory note dated August 21, 2017, issued to accredited investors, which matures February 21, 2019 and bears
interest at a rate of 12% per annum. The conversion price is $0.30, subject to adjustment. |
|
|
1,798,785 |
|
|
|
- |
|
| Total
Debt |
|
|
2,133,904 |
|
|
|
1,918,676 |
|
| |
|
|
|
|
|
|
|
|
| Less
Short-Term Portion |
|
|
- |
|
|
|
564,324 |
|
| |
|
|
|
|
|
|
|
|
| Long-Term
Portion |
|
$ |
2,133,904 |
|
|
$ |
1,354,352 |
|
|
| Conversion of the notes payable |
| |
|
For
the Three Months Ended |
|
|
For
the Nine Months Ended |
|
| |
|
September
30, |
|
|
September
30, |
|
| |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Fair
market value of common stock issued upon conversion |
|
$ |
6,424,597 |
|
|
$ |
- |
|
|
$ |
18,156,952 |
|
|
$ |
2,064,137 |
|
| Principal
amount of debt converted |
|
|
(3,250,000 |
) |
|
|
- |
|
|
|
(11,814,324 |
) |
|
|
(846,491 |
) |
| Accrued
interest converted |
|
|
(232,225 |
) |
|
|
- |
|
|
|
(506,985 |
) |
|
|
(115,249 |
) |
| Fair
value of derivative at conversion date |
|
|
(3,434,900 |
) |
|
|
- |
|
|
|
(9,106,950 |
) |
|
|
(570,100 |
) |
| Debt
discount value at conversion date |
|
|
1,866,066 |
|
|
|
- |
|
|
|
7,323,440 |
|
|
|
388,500 |
|
| Loss
on extinguishment of debt |
|
$ |
1,373,538 |
|
|
$ |
- |
|
|
$ |
4,052,133 |
|
|
$ |
920,797 |
|
|