Annual report pursuant to Section 13 and 15(d)

Long-Term Debt (Tables)

v3.6.0.2
Long-Term Debt (Tables)
12 Months Ended
Dec. 31, 2016
Debt Disclosure [Abstract]  
Components of Long-Term Debt
Long-term debt consisted of the following:
 
 
 
December 31,
 
December 31,
 
 
 
2016
 
2015
 
 
 
 
 
Note payable for research and development equipment. The principal is subject to a fixed semi-annual repayment schedule commencing October 31, 2012 over 48 months. The note carries a 0% interest rate. The note was repaid in full during 2016.
 
$
 
$
59,917
 
The note carries a 0% interest, but imputed interest has been accrued based on a 12% discount rate and is reflected as a reduction in the principal.
 
 
 
 
(21,085)
 
Note payable for which the principal and interest is subject to a fixed blended repayment schedule of 36 months, commencing July 15, 2013. The loan bears interest at 12% per year and is secured by a subordinated position in all the assets of the Company. This note was repaid in full during 2016.
 
 
 
 
16,958
 
Convertible, Senior Secured Notes payable. The principal is due June 3, 2017 and no principal payments are required prior to maturity. The notes carry a 5% annual interest rate, payable upon the note’s maturity. Both the interest plus accrued interest is convertible into shares of the Company’s common stock at $2.25, subject to normal adjustments. The notes are secured by a first security position in all the assets of the Company. Most of the notes are held by existing stockholders of the Company.
 
 
1,591,740
 
 
1,915,155
 
Convertible, Senior Secured Notes Debt Issuance Costs of $139,340, net of accumulated amortization. The estimated aggregate annual amortization expense is approximately $20,000 in 2017.
 
 
(19,500)
 
 
(66,074)
 
Unamortized debt discount related to derivative liability associated with above Notes’ conversion price that is subject to adjustment in the event of subsequent equity sales at a lower purchase price (subject to certain exceptions). Upon issuance on June 3, 2014, the discount was $1,938,988 which is being amortized as interest expense over the life of the loan or sooner if the related debt is converted.
 
 
(155,760)
 
 
(621,531)
 
 
 
 
 
 
 
 
 
 
 
$
1,416,480
 
$
1,283,340
 
Less: Amount Due Within One Year
 
 
(1,416,480)
 
 
(55,790)
 
 
 
 
 
 
 
 
 
Amount Due After One Year
 
$
 
$
1,227,550
 
Aggregate maturities for all long-term borrowings
The calendar year aggregate maturities for all borrowings exclusive of discounts as of December 31, 2016 are as follows:
 
Total Aggregate Maturity For Period
 
Amounts
 
 
 
 
 
2017
 
$
1,591,740
 
Total Unamortized Debt Discounts and Deferred Costs
 
 
(175,260)
 
 
 
 
 
 
Total Borrowings as of December 31, 2016
 
$
1,416,480