v3.8.0.1
NOTE PAYABLE
 9 Months Ended
Sep. 30, 2017
Debt Disclosure [Abstract]  
NOTE PAYABLE

NOTE 7 – NOTE PAYABLE

 

Note payable at September 30, 2017 and December 31, 2016 consists of the following:

 

 

 

September 30,

 

 

December 31,

 

 

 

2017

 

 

2016

 

 

 

 

 

 

 

 

September 2017 Note

 

 $ 200,000

 

 

 $ -

 

Less: Unamortized debt discount

 

 

 (45,580 )

 

 

 -

 

Total note payable

 

 

 154,420

 

 

 

 -

 

 

 

 

 

 

 

 

 

 

Less: current portion of note payable

 

 

 154,420

 

 

 

 -

 

Long-term note payable

 

 $ -

 

 

 $ -

 

 

During the nine months ended September 30, 2017 and 2016, the Company recognized interest expense of $701 and $0 and amortization of discount, included in interest expense, of $4,420 and $0, respectively.

 

September 2017 Note

 

On September 15, 2017, the Company entered into the promissory note agreement with SBI Investments LLC, the principal sum of $1,250,000, together with interest at the rate of 8% per annum. The consideration to the company for this promissory note is up to $1,000,000, due to the prorated original issuance discount (“OID”) of $250,000. The maturity date for each tranche funded shall be six months from the effective date of the respective payment date. The promissory note may be converted at any time on or after the occurrence of an event of default. The conversion price shall be the 60% multiplied by the lowest trading price during the 30 trading days period ending, in holder’s sole discretion on each conversion, on either (i) the last complete trading day prior to the conversion date or (ii) the conversion date.

 

An initial promissory note of $200,000 was issued on September 15, 2017 and the Company received cash of $150,000 and recognized OID of $40,000 and financing cost of $10,000 as debt discount.