Annual report pursuant to Section 13 and 15(d)

7. NOTES PAYABLE (Tables)

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7. NOTES PAYABLE (Tables)
 12 Months Ended
Dec. 31, 2017
Unsecured Note Payable [Member]  
Schedule of debt
    2017     2016  
 Unsecured promissory note - principal amount (Promissory Note)   $ 850,000     $ 850,000  
 Unamortized original issue discount and debt issuance costs     –       (26,309 )
 Unamortized debt discount - fair value of warrants     –       (144,517 )
 Debt extinguishment (Promissory Note)     (850,000 )     –  
 Unsecured promissory note - principal amount (Wiltshire 2)     850,000       –  
                 
 Net carrying amount of debt     850,000       679,174  
 Less current portion     –       –  
 Long-term borrowings - net of current portion   $ 850,000     $ 679,174  
Iliad Note 2 [Member] | Convertible Notes Payable [Member] [Default Label]  
Schedule of conversions

The Company’s borrowings under the Iliad SPA 2 for the years ended December 31, 2017 and 2016 is summarized in the table below:

 

    Maturity     December 31,
2017		     December 31,
2016		     Interest Rate  
                         
Secured promissory note payable     April 30, 2018     $ 770,000     $ –       8%  
Interest accrued             51,890       –          
Unamortized original issue discount and debt issuance costs             (5,714 )     –          
Unamortized discount - embedded derivative             –       –          
Conversion of convertible promissory notes and accrued interest to accrued liabilities             (75,000 )      –          
Cash repayment of promissory notes and accrued interest             (131,250 )      –          
                                 
Net carrying amount of debt             609,926       –          
Less current portion             (609,926 )     –          
Long-term borrowings - net of current portion           $ –     $ –          
Iliad Note [Member] | Convertible Notes Payable [Member] [Default Label]  
Schedule of debt

The Company’s outstanding borrowings under secured convertible promissory notes payable were as follows:

 

    December 31,
2017		     December 31,
2016		  
             
Iliad Note (defined below)   $ –     $ 1,897,976  
Iliad Note 2 (defined below)     609,926       –  
    $ 609,626     $ 1,897,976
Schedule of conversions
    Maturity     Balance     Interest Rate  
Senior Secured Convertible Promissory Notes:                        
                         
Tranche 2 (Note 2)     June 12, 2016       255,000       10%  
Tranche 3 (Note 3)     July 24, 2016       510,000       10%  
Tranche 4 (Note 4)     September 16, 2016       255,000       10%  
Total borrowings             1,020,000          
                         
Convertible notes converted (Note 2)             (255,000 )        
Convertible notes converted/repaid (Note 3)             (510,000 )        
Convertible notes repaid (Note 4)             (255,000 )        
                         
Net carrying amount of debt             –          
Less current portion             –          
Long-term borrowings - net of current portion           $ –