XML 256 R22.htm IDEA: XBRL DOCUMENT

Liquidated Damages Payable

12 Months Ended

Dec. 31, 2019

14. Liquidated Damages Payable

Liquidated Damages payable are summarized as follows:

	As of December 31, 2019
	MDB Common Stock to be Issued (1)		Series H Preferred Stock		12% Convertible Debentures		Series I Preferred Stock		Series J Preferred Stock		Total
Registration Rights damages	$	15,001	$	1,163,955	$	-	$	1,108,800	$	840,000	$	3,127,756
Public Information Failure Damages		-		1,163,955		893,190		1,039,500		840,000		3,936,645
Accrued interest		-		481,017		132,888		262,193		140,015		1,016,113
	$	15,001	$	2,808,927	$	1,026,078	$	2,410,493	$	1,820,015	$	8,080,514

	As of December 31, 2018
	MDB Common Stock to be Issued (1)		Series H Preferred Stock		12% Convertible Debentures		Total
Registration Rights Damages	$	15,001	$	1,163,955	$	-	$	1,178,956
Public Information Failure Damages		-		1,163,955		706,944		1,870,899
Accrued interest		-		481,017		116,726		597,743
	$	15,001	$	2,808,927	$	823,670	$	3,647,598

(1)	Consists of shares of common stock issuable to MDB Capital Group, LLC (“MDB”).

The components of the Liquidated Damages consist of the following:

Registration Rights Damages – On September 28, 2018, the Company determined that the registration statement registering the shares of common stock issuable upon conversion of the Series H Preferred Stock would not be probable of being filed and declared effective within the requisite time frame because of the Company’s failure to file all periodic reports required to satisfy public information requirements; therefore, the Company would be liable for the maximum Liquidated Damages in connection with the Series H Preferred Stock issuance, with any related interest provisions (as further described in Note 19).

Public Information Failure Damages – On September 28, 2018, the Company determined that the public information requirements in connection with the Series H Preferred Stock would not be probable of being satisfied within the requisite time frame, therefore, the Company would be liable for the maximum Liquidated Damages in connection with the Series H Preferred Stock issuance, with any related interest provisions (as further described in Note 19).

On December 12, 2018, the Company determined that the public information requirements in connection with the 12% Convertible Debentures would not be probable of being satisfied within the requisite time frame, therefore, the Company would be liable for a portion of the Liquidated Damages in connection with the 12% Convertible Debentures, with any related interest provisions (as further described in Note 17).

Information with respect to the Liquidated Damages recognized on the consolidated statements of operations is provided in Note 23, and for amounts contingently liable in Note 26.