| Note 6 Long Term Debt |
Long
term debt consisted of the following at June 30, 2017 and December 31, 2016:
| |
|
June
30,
2017 |
|
|
December
31,
2016 |
|
| |
|
|
|
|
|
|
| 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. |
|
|
- |
|
|
|
125,000 |
|
| |
|
|
|
|
|
|
|
|
| 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. |
|
|
- |
|
|
|
366,176 |
|
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|
|
|
|
|
|
|
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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 $ $168,120
and $208,064 at June 30, 2017 and December 31, 2016 respectively. |
|
|
1,379,713 |
|
|
|
421,936 |
|
| |
|
|
|
|
|
|
|
|
| On
October 4, 2016, the Company issued a non-interest bearing note, payable on demand in the amount of $203,000. |
|
|
203,000 |
|
|
|
203,000 |
|
| |
|
|
|
|
|
|
|
|
| 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 $20,758 and $17,311 at June 30, 2017 and December 31, 2016 respectively. |
|
|
1,707,689 |
|
|
|
1,745,833 |
|
| |
|
|
3,290,402 |
|
|
|
2,881,945 |
|
| Less
current portion |
|
|
(1,794,076 |
) |
|
|
(1,302,476 |
) |
| |
|
$ |
1,496,326 |
|
|
$ |
1,579,469 |
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|