| Schedule of debt and conversions |
The
Company’s borrowings and conversions under the SPA for the six months ended June 30, 2016 and for the year ended December
31, 2015 is summarized in the table below:
| |
|
|
|
|
June
30, 2016 |
|
|
December
31, 2015 |
|
|
|
|
| |
|
Maturity |
|
|
Balance |
|
|
Balance |
|
|
Interest
Rate |
|
| Senior Secured Convertible Promissory Notes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tranche 1 (Note 1) |
|
|
May
19, 2016 |
|
|
$ |
– |
|
|
$ |
510,000 |
|
|
|
10% |
|
| Tranche 2 (Note 2) |
|
|
June
12, 2016 |
|
|
|
255,000 |
|
|
|
510,000 |
|
|
|
10% |
|
| Tranche 3 (Note 3) |
|
|
July
24, 2016 |
|
|
|
510,000 |
|
|
|
510,000 |
|
|
|
10% |
|
| Tranche 4 (Note 4) |
|
|
September
16, 2016 |
|
|
|
255,000 |
|
|
|
255,000 |
|
|
|
10% |
|
| Total borrowings |
|
|
|
|
|
|
1,020,000 |
|
|
|
1,785,000 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Convertible notes converted (Note 1) |
|
|
|
|
|
|
– |
|
|
|
(510,000 |
) |
|
|
|
|
| Convertible notes converted (Note 2) |
|
|
|
|
|
|
(255,000 |
) |
|
|
(255,000 |
) |
|
|
|
|
| Convertible notes converted/repaid (Note 3) |
|
|
|
|
|
|
(510,000 |
) |
|
|
– |
|
|
|
|
|
| Convertible notes repaid (Note 4) |
|
|
|
|
|
|
(255,000 |
) |
|
|
– |
|
|
|
|
|
| Unamortized debt issuance cost |
|
|
|
|
|
|
– |
|
|
|
(99,805 |
) |
|
|
|
|
| Unamortized
debt discount - beneficial conversion feature |
|
|
|
|
|
|
– |
|
|
|
(38,392 |
) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net carrying amount of debt |
|
|
|
|
|
|
– |
|
|
|
881,803 |
|
|
|
|
|
| Less current portion |
|
|
|
|
|
|
– |
|
|
|
(881,803 |
) |
|
|
|
|
| Long-term
borrowings - net of current portion |
|
|
|
|
|
$ |
– |
|
|
$ |
– |
|
|
|
|
|
The Company’s
borrowing under the Iliad Note for the six months ended June 30, 2016 and for the year ended December 31, 2015 is summarized in
the table below:
| |
|
|
|
|
|
|
June
30, 2016 |
|
|
|
December
31, 2015 |
|
|
|
|
|
| |
|
|
Maturity |
|
|
|
Balance |
|
|
|
Balance |
|
|
|
Interest
Rate |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Secured convertible promissory note payable |
|
|
June
24, 2017 |
|
|
$ |
2,055,000 |
|
|
$ |
– |
|
|
|
10% |
|
| Interest accrued |
|
|
|
|
|
|
21,227 |
|
|
|
|
|
|
|
|
|
| Unamortized original issue discount and debt issuance costs |
|
|
|
|
|
|
(72,258 |
) |
|
|
– |
|
|
|
|
|
| Unamortized debt discount - beneficial conversion
feature |
|
|
|
|
|
|
(292,419 |
) |
|
|
– |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net carrying amount of debt |
|
|
|
|
|
|
1,711,550 |
|
|
|
– |
|
|
|
|
|
| Less current portion |
|
|
|
|
|
|
(1,711,550 |
) |
|
|
– |
|
|
|
|
|
| Long-term borrowings
- net of current portion |
|
|
|
|
|
$ |
– |
|
|
$ |
– |
|
|
|
|
|
|
| Schedule of debt and conversions |
The Company’s
borrowing under the Promissory Note for the six months ended June 30, 2016 and for the year ended December 31, 2015 is summarized
below:
| |
|
|
|
|
June
30, 2016 |
|
|
December
31, 2015 |
|
|
|
|
| |
|
Maturity |
|
|
Balance |
|
|
Balance |
|
|
Interest
Rate |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unsecured promissory note payable |
|
|
February
1, 2018 |
|
|
$ |
850,000 |
|
|
$ |
– |
|
|
|
12% |
|
| Unamortized original issue discount and debt issuance costs |
|
|
|
|
|
|
(38,451 |
) |
|
|
– |
|
|
|
|
|
| Unamortized debt discount - fair value of warrants |
|
|
|
|
|
|
(211,217 |
) |
|
|
– |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net carrying amount of debt |
|
|
|
|
|
|
600,332 |
|
|
|
– |
|
|
|
|
|
| Less current portion |
|
|
|
|
|
|
– |
|
|
|
– |
|
|
|
|
|
| Long-term borrowings
- net of current portion |
|
|
|
|
|
$ |
600,332 |
|
|
$ |
– |
|
|
|
|
|
|