NOTES PAYABLE (Tables)
|
9 Months Ended |
Sep. 30, 2018 |
|---|
| Notes Payable |
|
| Notes payable |
| |
|
September 30, |
|
|
December 31, |
|
| |
|
2018 |
|
|
2017 |
|
| 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 $4.50, subject to adjustment. The balance of the note and accrued interest was converted into common stock in January 2018. |
|
$ |
- |
|
|
$ |
640,010 |
|
| Senior convertible promissory note dated December 26, 2017, issued to accredited investors, which matures June 26, 2019 and bears interest at a rate of 12% per annum. The conversion price is $4.50, subject to adjustment. The balance of the note and accrued interest was converted into common stock in January 2018. |
|
|
- |
|
|
|
1,469,388 |
|
| Promissory note dated November 22, 2017, issued for the purchase of real property. Matures December 1, 2020, with an option to extend the maturity date 1 year. The promissory note bears interest at 12.0% for year one and escalates 0.5% per year thereafter up to 13.5%. In the event of default, the note is convertible at the holder's option. |
|
|
4,500,000 |
|
|
|
4,500,000 |
|
| Promissory note dated January 18, 2018, issued for the purchase of real property. The promissory note is collateralized by the land and building purchased and matures February 1, 2021, with an option to extend the maturity date 1 year. The promissory note bears interest at 12.0% for year one and escalates 0.5% per year thereafter up to 13.0%. The full principle balance and accrued interest are due at maturity. In the event of default, the note is convertible at the holder's option. |
|
|
6,218,286 |
|
|
|
- |
|
| Senior convertible promissory note dated July 25, 2018, issued to accredited investors under the 2018 Master Securities Purchase and Convertible Promissory Notes Agreement, which matures January 25, 2020 and bears interest at a rate of 7.5% per annum. The conversion price is $4.50, subject to adjustment. |
|
|
2,394,774 |
|
|
|
- |
|
| Securities Purchase Agreement dated July 25, 2018, issued to accredited investors, which matures July 25, 2019 and bears interest at a rate of 3.0% per annum. The conversion price is 5.0% discount to the average of the three (3) lowest VWAPs in the five (5) trading days prior to the conversion date. |
|
|
134,398 |
|
|
|
- |
|
| Senior convertible promissory note dated September 6, 2018, issued to accredited investors under the 2018 Master Securities Purchase and Convertible Promissory Notes Agreement, which matures March 7, 2020 and bears interest at a rate of 7.5% per annum. The conversion price is $4.50, subject to adjustment. |
|
|
580,887 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| Long-Term Debt, Net of Discounts |
|
$ |
13,828,345 |
|
|
$ |
6,609,398 |
|
|
| Conversion of the notes payable |
| |
|
Three
Months Ended September 30, |
|
|
Nine
Months Ended September 30, |
|
| |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
| Fair
market value of common stock issued upon conversion |
|
$ |
13,041,469 |
|
|
$ |
6,424,597 |
|
|
$ |
42,968,230 |
|
|
$ |
18,156,952 |
|
| Principal
amount of debt converted |
|
|
(8,900,000 |
) |
|
|
(3,250,000 |
) |
|
|
(26,800,000 |
) |
|
|
(11,814,324 |
) |
| Accrued
interest converted |
|
|
(118,041 |
) |
|
|
(232,225 |
) |
|
|
(311,320 |
) |
|
|
(506,985 |
) |
| Fair
value of derivative at conversion date |
|
|
(3,699,000 |
) |
|
|
(3,434,900 |
) |
|
|
(19,271,000 |
) |
|
|
(9,106,950 |
) |
| Debt
discount value at conversion date |
|
|
3,932,601 |
|
|
|
1,866,066 |
|
|
|
15,529,842 |
|
|
|
7,323,440 |
|
| Loss
on extinguishment of debt |
|
$ |
4,257,029 |
|
|
$ |
1,373,538 |
|
|
$ |
12,115,752 |
|
|
$ |
4,052,133 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common
Stock Issued Upon Conversion (1) |
|
|
6,111,043 |
|
|
|
1,668,902 |
|
|
|
13,414,287 |
|
|
|
5,769,600 |
|
(1)
Adjusted to reflect the one-for-15 reverse stock split. See "Note 1 – Description of Business.”
|