Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt

v3.7.0.1
Long-Term Debt
6 Months Ended
Jun. 30, 2017
Debt Disclosure [Abstract]  
Long-Term Debt
Note 6 — Long-Term Debt
 
Long-term debt consisted of the following:
 
 
 
June 30,
 
December 31,
 
 
 
2017
 
2016
 
 
 
 
 
 
 
Convertible, Senior Secured Notes payable. The principal is due June 3, 2017 and no payments are required prior to maturity. The notes carry a 5% annual interest rate, payable upon the notes’ maturity. Both the principal 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.
 
 
 
 
1,591,740
 
Convertible, Senior Secured Notes Debt Issuance Costs of $139,340, net of accumulated amortization.
 
 
 
 
(19,500)
 
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.
 
 
 
 
(155,760)
 
 
 
 
 
 
 
 
 
 
 
$
 
$
1,416,480
 
Less: Amount Due Within One Year
 
 
 
 
(1,416,480)
 
 
 
 
 
 
 
 
 
Amount Due After One Year
 
$
 
$
 
 
All of the $1,591,740 in Convertible Senior Secured Notes outstanding as of December 31, 2016, were converted into 707,440 shares of common stock during the six months ended June 30, 2017 and $269,543 of accrued interest on these Notes were converted into 119,797 shares of common stock during the six months ended June 30, 2017.