Annual report pursuant to Section 13 and 15(d)

Long-Term Debt (Tables)

v3.3.1.900
Long-Term Debt (Tables)
12 Months Ended
Dec. 31, 2015
Debt Disclosure [Abstract]  
Components of Long-Term Debt
Long-term debt consisted of the following:
 
 
 
December 31,
 
December 31,
 
 
 
2015
 
2014
 
 
 
 
 
 
 
 
 
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.
 
$
59,917
 
$
186,131
 
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)
 
 
(46,399)
 
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
 
 
50,874
 
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, payable upon the note’s maturity. Both the interest plus accrued interest is convertible into shares of the Company’s common shares 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.
 
 
1,915,155
 
 
2,375,000
 
Convertible, Senior Secured Notes issued on June 3, 2014 Debt Issuance Costs of $139,340, net of accumulated amortization. The estimated aggregate annual amortization expense for each of the next fiscal years until maturity is approximately $46,000 and approximately $20,000 in the following fiscal year.
 
 
(66,074)
 
 
(112,521)
 
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.
 
 
(621,531)
 
 
(1,348,185)
 
 
 
 
 
 
 
 
 
 
 
$
1,283,340
 
$
1,104,900
 
Less: Amount Due Within One Year
 
 
(55,790)
 
 
(128,425)
 
 
 
 
 
 
 
 
 
Amount Due After One Year
 
$
1,227,550
 
$
976,475
 
Aggregate maturities for all long-term borrowings
The calendar year aggregate maturities for all long-term borrowings exclusive of discounts as of December 31, 2015 are as follows:
 
Total Aggregate Maturity For Period
 
Amounts
 
 
 
 
 
2016
 
$
76,875
 
2017
 
 
1,915,155
 
Total Required Principal Payments Exclusive of Debt Discounts
 
 
1,992,030
 
Total Unamortized Debt Discounts and Deferred Costs
 
 
(708,690)
 
 
 
 
 
 
Total Net Long-Term Borrowings as of December 31, 2015
 
$
1,283,340