XML 30 R16.htm IDEA: XBRL DOCUMENT
v3.19.1

NOTES PAYABLE - RELATED PARTY | 12 Months Ended
--- | ---
Dec. 31, 2018
Debt Disclosure [Abstract] |
NOTES PAYABLE - RELATED PARTY |
9. | NOTES PAYABLE - RELATED PARTY
Line of credit convertible note payable - related party consists of the following as of:
|  | December 31, |  |  | December 31, |
|  | 2018 |  |  | 2017 |
-In July 2010, the Company entered into a line of credit note payable with a related party and major shareholder which carries interest of five percent per annum paid quarterly. The Company can borrow up to $9,500,000. The Company has pledged all its assets as security for the line of credit. The note matures in January 2020, at which time the principal amount is due. During April 2015, the Company issued $4,000,000 of convertible series D preferred series in exchange for cancellation of $4,000,000 of this line, reducing the amount to $4,500,000. During March 2018, the Company issued $1,000,000 of common stock in exchange for cancellation of $1,000,000 of this line, reducing the amount to $3,500,000. In December 2018, the company amended and restated the note payable into a convertible loan agreement continuing to carry a five percent per annum interest but payable semi-annually. As a result, of this substantial modification which was treated as a debt extinguishment, a new liability was established and a loss of $377,0418 on the extinguishment of debt was recognized. The Company can now borrow up to $5.0 million. The note matures in December 2020. The balance at December 31, 2018 is convertible into 1,032,162 shares at a fixed conversion price of $3.40 per share which was determined based on the average of the closing price for the shares during the ten (10) business days prior to the Advance Date, less a discount of 10%. |  |  |  |  |  |
Long-term portion |  | $ | 3,500,000 |  |  | $ | 3,500,000 |
|  | December 31, |  |  | December 31, |
|  | 2018 |  |  | 2017 |
Convertible Note Payable |  |  |  |  |  |
-In December 2018, the company entered into a convertible note payable with a related party and shareholder which carries interest of five percent per annum paid semi-annually. The Company can borrow up to $3.0 million and as of December 31, this note had an unamortized discount of $324,371. The note matures in December 2020. The balance at December 31, 2018 is convertible into 989,543 shares at a fixed conversion price of $3.04 per share which was determined based on the average of the closing price for the shares during the ten (10) business days prior to the Advance Date, less a discount of 10%. |  | 2,675,629 |  |  | — |
-In December 2018, the company entered into a line of credit convertible note payable with a related party and shareholder which carries interest of five percent per annum paid semi-annually. The Company can borrow up to $2.0 million and as of December 31, this note had an unamortized discount of $216,248. The note matures in December 2020. The balance at December 31, 2018 is convertible into 659,695 shares at a fixed conversion price of $3.04 per share which was determined based on the average of the closing price for the shares during the ten (10) business days prior to the Advance Date, less a discount of 10%. |  | 1,783,752 |  |  | — |
Long-term portion-Net of Discount |  | $ | 4,459,381 |  |  | $ | — |

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration