| Schedule of Long-term Debt |
Long
term debt consisted of the following at December 31, 2017 and 2016:
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December
31,
2017
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December
31,
2016
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| On
February 19, 2016, the Company issued a total of $1,625,000 15% convertible notes with a term expiring August 18, 2016 (the
“Maturity Date”). The principal amounts of each note and interest is payable on the maturity date. Placement fees
of $145,000 were subtracted from proceeds. The notes are convertible into common stock at any time, at the holder’s
option, the conversion price shall be the lowest of (i) $0.15, (ii) 58% of the price of the Company’s securities that
are sold in any offering of the Company’s securities in excess of $100,000, of (iii) the conversion price of any Equity
converted on or prior to the Conversion Date. |
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- |
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125,000 |
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| On
April 29, 2016, the Company issued a total of $375,000 of 10% Secured Subordinated promissory notes with a term expiring January
12, 2017 (the “Maturity Date”), and an original issue discount of fifty percent (50%). Interest is payable on
the outstanding principal of these notes at 10% per annum on the Maturity Date. The balance shown is net of unamortized discount
of $8,824 at December 31, 2016. |
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- |
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366,176 |
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| On
July 27, 2016, the Company issued a promissory note in the amount of $20,000, bearing interest at 12%, with an initial maturity
date of August 27, 2016, and a provision for an extension of six additional terms of 30 days. |
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20,000 |
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| As
of December 31, 2016, the Company issued a total of $630,000 of 10% Secured promissory notes with a term expiring April 3,
2017 (the “Maturity Date”), and an original issue discount of thirty-seven and one-half percent (37.5%). The discount
was modified to fifty percent (50%) retroactively with an extension of the maturity to June 2017. During the quarter ended
March 31, 2017, the Company issued an additional $917,833 of 10% Secured promissory notes with terms expiring in June, August
and September of 2017, and an original issue discount of fifty percent (50%). Interest is payable on the outstanding principal
of these notes at 10% per annum on the various maturity dates. The balance shown is net of unamortized discount of $0 and
$208,064 at September 30, 2017 and December 31, 2016 respectively. |
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75,000 |
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421,936 |
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| On
October 4, 2016, the Company issued a non-interest-bearing note, payable on demand in the amount of $203,000. This amount
has been paid in full as of November 1, 2017. |
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203,000 |
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| On
October 4, 2016, the Company closed on a revolver loan with Crossfirst Bank in the amount of $1,800,000, payable at $15,000
per month, interest at 10%, with all unpaid principal and accrued interest payable on September 30, 2018. The balance shown
is net of unamortized discount of $10,341 and $24,167 at December 31, 2017 and 2016 respectively. |
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1,594,659 |
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1,745,833 |
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| During
July and August of 2017, the Company borrowed $1,475,000 from private lenders pursuant to a 10% Secured Convertible Promissory
Note with a twelve-month maturity. The balance shown is net of unamortized discount of $271,403 and $0 at December 31, 2017
and 2016 respectively. |
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1,203,597 |
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| During
August through December of 2017, the Company borrowed $2,989,000 from private lenders pursuant to a 10% Secured Promissory
Note with all principal and accrued interest payable on the maturity date of October 31, 2018. The balance shown is net of
unamortized discount of $867,399 and $0 at December 31, 2017 and 2016 respectively. |
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2,121,601 |
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| On
September 8, 2017, the Company closed on a Promissory Note with Cornerstone Bank in the amount of $256,983, payable interest
only for the first twelve months commencing October 8, 2017, variable interest rate, currently at 5.5%, followed by 83 monthly
payments of $3,765, interest at 6%, final payment due on September 8, 2025. The balance shown is net of unamortized discount
of $3,113 and $0 at December 31, 2017 and 2016 respectively. |
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253,870 |
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| On
September 29, 2017, the Company closed on a Promissory Note with Cornerstone Bank in the amount of $290,000, payable interest
only for the first twelve months commencing October 29, 2017, variable interest rate, currently at 5.5%, followed by 83 monthly
payments of $3,765, interest at 6%, final payment due on September 29, 2025. The balance shown is net of unamortized discount
of $3,925 and $0 at December 31, 2017 and 2016 respectively. |
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286,075 |
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- |
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| On
October 3, 2017, the Company closed on a Promissory Note with Cornerstone Bank in the amount of $204,000, payable interest
only for the first twelve months commencing November 3, 2017, variable interest rate, currently at 5.5%, followed by 83 monthly
payments of $3,765, interest at 6%, final payment due on October 3, 2025. The balance shown is net of unamortized discount
of $3,451 and $0 at December 31, 2017 and 2016 respectively. |
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200,549 |
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| On
December 22, 2017, the Company borrowed $8,510,638, through 405 Petrodome, LLC, as agent for Lenders, with an OID of 6%.,
bearing interest initially at 9.875% through June 2018, then 11.375% through December 2018, then 12.875% through June 2019,
then 14.375% through December 2019. Interest only through June 2018, at which time Principal will be payable at $75,000 monthly
for six months and then $125,000 monthly to the maturity date of December 22, 2019. The balance shown is net of unamortized
discounts of $941,108 and $0 at December 31, 2017 and 2016 respectively. |
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7,569,530 |
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- |
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13,304,881 |
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2,881,945 |
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| Less
current portion |
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(3,562,051 |
) |
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(1,302,476 |
) |
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$ |
9,742,830 |
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$ |
1,579,469 |
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