Quarterly report pursuant to Section 13 or 15(d)

Notes Payable

v3.19.2
Notes Payable
6 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
NOTES PAYABLE

NOTE 6 – NOTES PAYABLE

 

       The following table outlines the Company’s notes payable as of June 30, 2019 and December 31, 2018:

   

June 30,

2019

   

December 31,

2018

 
Convertible notes of $550,000 issued in May of 2018.  These notes have a maturity date of May 28, 2019 and accrue interest at a rate of 12% compounded annually.  The conversion price for these notes is $0.23 per share of common stock, subject to adjustment.  The borrowers have converted $344,642 of these notes including $9,922 of interest as of June 30, 2019 and December 31, 2018.  One note has been repaid as of June 30, 2019, and the other note is currently in technical default.   $ 170,280     $ 215,280  
                 
Warrants to purchase up to 2,391,305 shares of common stock with an exercise price of $0.28 per share.  The fair value of the warrants was determined to be $533,691 and was recorded as a debt discount to be amortized over the life of the note.  For the six months ended June 30, 2019 and year ended December 31, 2018, amortization of debt discount was $217,864 and $315,828, respectively.     -       (217,864 )
                 
Promissory note of $230,000 issued in October of 2018.  This note has a maturity date of April 1, 2019 and bears no interest, but requires an additional $30,000 from the original $200,000 received.  The Company has recorded $0 and $12,000 as accrued interest as of June 30, 2018 and December 31, 2018, respectively.  This note was repaid on April 1, 2019.     -       200,000  
                 
Related party promissory note of $106,000 issued in December of 2018.  This note has a maturity date of March 1, 2019 and bears no interest, but requires an additional $6,000 from the original $100,000 received.  The Company has recorded $9,000 as accrued interest as of June 30, 2019.     100,000       50,000  
    $ 270,280     $ 247,416