Quarterly report pursuant to Section 13 or 15(d)

Long-Term Debt

v3.8.0.1
Long-Term Debt
9 Months Ended
Sep. 30, 2017
Debt Disclosure [Abstract]  
Long-Term Debt
Note 6 — Long-Term Debt
 
Long-term debt consisted of the following:
 
 
 
September 30,
 
December 31,
 
 
 
2017
 
2016
 
 
 
 
 
 
 
Convertible, Senior Secured Notes payable. The principal was due June 3, 2017 and no payments were required prior to maturity. The notes carried a 5% annual interest rate, payable upon the notes’ maturity. Both the principal plus accrued interest were convertible into shares of the Company’s common stock at $2.25, subject to normal adjustments. The notes were 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 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.
 
 
 
 
(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 nine months ended September 30, 2017 and $269,543 of accrued interest on these Notes were converted into 119,797 shares of common stock during the nine months ended September 30, 2017.