v3.10.0.1
PROMISSORY NOTES AND OTHER DEBT (Tables)
 9 Months Ended
Sep. 30, 2018
Debt Instruments [Abstract]  
Schedule of Long-term Debt Instruments
Information regarding the various promissory notes that were outstanding as of September 30, 2018 is set forth in the table below:
 
 
 
Principal

Amount
 
 
Interest

Rate
 
 
Maturity Date
 
Conversion

Rate
 
Current promissory notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Secured, convertible note
 
$
44,546
 
 
 
11.5
%
 
11/30/18
(1)
 
$
1.254
 
Secured note
 
 
250,000
 
 
 
11.5
%
 
4/30/17
(2)
 
$
1.254
 
Unsecured, convertible note
 
 
250,000
 
 
 
6.5
%
 
4/30/17
(2)
 
$
1.254
 
Unsecured, convertible note
 
 
500,000
 
 
 
6.5
%
 
4/30/17
(2)
 
$
1.254
 
Total promissory notes
 
$
1,044,546
 
 
 
 
 
 
 
 
 
 
 
 
 
(1)
On October 21, 2016, the Company and the holder of this note mutually agreed to amend the note by: (i) extending the maturity date from April 12, 2016 to October 31, 2017; (ii) continuing the interest rate at 11.5% per annum through the new maturity date; (iii) obligating the Company to make monthly payments on the note of $10,000 per month beginning in November 2016; and (iv) adding a conversion feature to the note that allows the note holder to convert the unpaid balance due under the note into shares of the Company’s common stock at a conversion rate of $6.40 per share.
 
On July 17, 2017, the Company and the holder of this note mutually agreed to further amend the note by: (a) extending the maturity date from October 31, 2017 to November 15, 2017; (b) granting to the holder of the note a right to convert the entire outstanding unpaid balance of the note, including any unpaid accrued interest thereon, into shares of the Company’s common stock at a conversion rate 
of $
3.00 per share through November 15, 2017; and (c) tolling the Company’s obligation to make monthly payments on the note until after November 15, 2017.
 
 
On February 27, 2018, the Company and the holder of this note mutually agreed to further amend the note by: (a) extending the maturity date from November 15, 2017 to April 30, 2018; and (b) further tolling the Company’s obligation to make monthly payments on the note until after April 30, 2018, at which time, the maturity date was further extended and the Company was to resume making payments of $10,000 per month until the note is paid in full.
 
In August 2018, the Company and the holder of this note mutually agreed to further amend the note by: (a) extending the maturity date from April 30, 2018 to November 30, 2018; (b) granting to the holder of the note a right to convert the entire outstanding unpaid balance of the note, including any unpaid accrued interest thereon, into shares of the Company’s common stock at a conversion rate of $3.00 per share through November 30, 2018; and (c) tolling the Company’s obligation to make monthly payments on the note until after November 30, 2018, at which time, the maturity date will be further extended and the Company will resume making payments of $10,000 per month until the note is paid in full.
 
 
(2)
In March 2017, the Company and the holder of these notes mutually agreed to extend the maturity dates of these notes to April 30, 2017, thus curing the technical default of the notes that had occurred on the prior maturity dates of May 11, 2016 for the secured note and April 15, 2016 for the unsecured notes. As of September 30, 2018, these notes were once again in technical default. However, the note holder has not declared an event of default. The Company is attempting to further extend the maturity dates on these notes. However, the Company gives no assurance that an agreement to extend such maturity dates will be achieved.