Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt

v3.5.0.2
Long-Term Debt
6 Months Ended
Jun. 30, 2016
Debt Disclosure [Abstract]  
Long-Term Debt
Note 6 — Long-Term Debt
 
Long-term debt consisted of the following:
 
 
 
June 30,
2016
 
December 31,
2015
 
 
 
 
 
 
 
 
 
Note payable for research and development equipment. The principal is subject to a fixed semi-annual repayment schedule commencing October 31, 2013 over 48 months. The note carries a 0% interest rate.
 
$
21,665
 
$
59,917
 
The note carries a 0% interest rate, but imputed interest has been accrued based on a 12% discount rate and is reflected as a reduction in the principal.
 
 
(8,434)
 
 
(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.
 
 
 
 
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% 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 per share, subject to normal adjustments. The notes are secured by a first security position in all the assets of the Company.
 
 
1,896,240
 
 
1,915,155
 
Convertible, Senior Secured Notes Payable Issuance Costs of $139,340, net of accumulated amortization. The estimated aggregate amortization expense is approximately $23,000 for the remainder of fiscal 2016 and approximately $20,000 in the following fiscal year.
 
 
(42,914)
 
 
(66,074)
 
Unamortized debt discount related to derivative liability associated with above notes’ conversion price that was 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.
 
 
(398,161)
 
 
(621,531)
 
 
 
 
 
 
 
 
 
 
 
 
1,468,396
 
 
1,283,340
 
Less: Amount Due Within One Year
 
 
(1,468,396)
 
 
(55,790)
 
 
 
 
 
 
 
 
 
Amount Due After One Year
 
$
 
$
1,227,550
 
 
The calendar year aggregate maturities for all long-term debt exclusive of discounts as of June 30, 2016 are as follows:
 
Total Aggregate Maturity For Period
 
Amounts
 
 
 
 
 
 
2016
 
$
21,665
 
2017
 
 
1,896,240
 
Total Required Principal Payments Exclusive of Debt Discounts
 
 
1,917,905
 
Total Unamortized Debt Discounts and Deferred Costs
 
 
(449,509)
 
 
 
 
 
 
Total Net Long-Term Borrowings as of June 30, 2016
 
$
1,468,396
 
 
Of the Convertible, Senior Secured Notes, a total of $18,915 were converted into 8,407 shares of common stock and a total of $3,585 of accrued interest on these Notes were converted into 1,593 shares of common stock during the six months ended June 30, 2016.