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Outstanding Debt

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Outstanding Debt

(8) Outstanding Debt

On June 4, 2018, July 21, 2018, August 29, 2018, and September 21, 2018, the Company issued 8% senior secured convertible notes (collectively, “the Notes”) to investors with aggregate principal amount of $9.4 million and maturity dates between December 2018 and March 2021. The Notes are secured pursuant to a Security Agreement which creates a first priority security interest in all of the personal property (other than Excluded Collateral (as defined in the Security Agreement) of the Company of every kind and description, tangible or intangible, whether currently owned and existing or created or acquired in the future.

In April 2019, the Company received notices of default from the investors in the Notes.

Amendment to June 2018, July 2018 and August 2018 Notes

In March 2019, the Company amended the June 2018, July 2018 and August 2018 Notes to make them non-convertible. There was no impact to the financial statements.

Issuance of March 2019 Notes

In March 2019, the Company exchanged all of its Series D Preferred Stock (with a stated value of $1,160,000) and received $400,000 in proceeds and issued a senior secured promissory note with a principal amount of $1,560,000. The note is due on April 1, 2020, bears interest at 8% per annum and is nonconvertible. The principal was recognized in notes payable on the Condensed Consolidated Balance Sheet.

The following tables provide a summary of the Notes by their maturity dates (absent provisions of default) at March 31, 2019 and December 31, 2018:

(in millions)		Interest rate		Conversion price				Principal				Unamortized Discount				Carrying value
Short term convertible notes payable
March 21, 2019		8.0%		$	1.75			$	0.4			$	(0.1	)		$	0.3
March 21, 2020		8.0%		$	1.75				0.1				—				0.1
									0.5				(0.1	)			0.4
Short term notes payable
December 4, 2018		8.0%			—				1.7				—				1.7
March 1, 2019		8.0%			—				0.6				—				0.6
December 4, 2019		8.0%			—				0.9				(0.2	)			0.7
March 1, 2020		8.0%			—				0.8				—				0.8
April 1, 2020		8.0%			—				1.6				—				1.6
									5.6				(0.2	)			5.4
Balance at March 31, 2019								$	6.1			$	(0.3	)		$	5.8

(in millions)		Interest rate		Conversion price				Principal				Unamortized Discount				Carrying value
December 4, 2018		8.0%		$	1.75			$	1.7			$	—			$	1.7
March 1, 2019		8.0%		$	1.75				0.6				(0.5	)			0.1
March 21, 2019		8.0%		$	1.75				0.4				(0.2	)			0.2
December 4, 2019		8.0%		$	1.75				0.9				(0.9	)			—
March 1, 2020		8.0%		$	1.75				0.8				(0.8	)			—
March 21, 2020		8.0%		$	1.75				0.1				(0.1	)			—
Balance at December 31, 2018								$	4.5			$	(2.5	)		$	2.0

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- References

No definition available.

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- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ 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

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