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NOTES PAYABLE
 12 Months Ended
Dec. 31, 2017
Debt Disclosure [Abstract]  
NOTES PAYABLE

The following is a summary of notes payable:

 

    December 31, 2017     December 31, 2016  
      Current portion, net         Non-current portion, net         Total         Current portion, net         Non-current portion, net         Total    
Convertible 5% Notes Payable   $ 127,614     $ --     $ 127,614     $ 68,875     $ --     $ 68,875  
  Totals   $ 127,614     $ --     $ 127,614     $ 68,875     $ --     $ 68,875  

 

 

Convertible 5% Notes Payable

 

The 5% Notes and accrued and unpaid interest thereon are convertible at the option of the holder into common stock at the conversion price of $1,125 per share. We have no obligation under the 5% Notes aside from (a) 50% of the net product cash flows from Ariston’s product candidates, if any, payable to noteholders; and (b) the conversion feature, discussed above. Interest accrues monthly, is added to principal on an annual basis, every March 8, and is payable at maturity, which was March 8, 2015 (see Note 4 for further details).

 

The cumulative liability including accrued and unpaid interest of these notes was approximately $17.5 million at December 31, 2017 and $16.7 million at December 31, 2016. No payments have been made on the 5% Notes as of December 31, 2017.

 

In December 2011, we elected the fair value option for valuing the 5% Notes. The fair value option was elected in order to reflect in our financial statements the assumptions that market participants use in evaluating these financial instruments (see Note 4 for further details).