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Notes Payable and Long-Term Debt (Tables)
 9 Months Ended
Sep. 30, 2016
Schedule of Notes Payable and Long-Term Debt

As of September 30, 2016 and December 31, 2015, notes payable and long-term debt consists of:

 

    September 30, 2016     December 31, 2015  
On October 26, 2011, the Company entered into a note payable in the amount of $362,257, relating to a Unit redemption agreement bearing interest at 6% per annum and is payable in equal monthly installments of $7,003, inclusive of interest, past due   $ 68,973     $ 91,706  
                 
Convertible Promissory Note - Non-interest bearing; on January 19, 2016, the Company modified the terms of a secured note payable in the original amount of $950,000 and made the $700,000 balance convertible¹     456,363       720,000  
                 
Note payable to former officer due in four equal annual installments of $25,313 on April 28 of each year, non-interest bearing; past due in 2016     101,250       101,250  
                 
Notes payable to seller of DigitizeIQ, LLC due as noted below²     485,000       747,140  
                 
Senior Secured Credit Facility dated February 24, 2016; interest at 18% per annum; interest only for two months then 16 payments of $28,306 monthly³     128,290       -  
                 
Note payable to Pinz Capital International, LP dated May 25, 2016 with interest at 18%⁴     100,000       -  
                 
Convertible note payable to River North Equity LLC dated July 13, 2016 with interest at 10% per annum; due April 13, 2017; convertible into common stock at 60-75% of lowest trading price in the previous 30 trading days⁵     10,752       -  
                 
Convertible promissory note payable to Salksanna, LLC dated September 13, 2016 with interest at 10% per annum; due March 13, 2018; convertible into common stock at 60-70% of lowest trading price in previous 20 trading days⁶     1,569       -  
      1,352,197       1,660,096  
Less current portion     1,300,003       1,104,159  
Long-term debt   $ 52,194     $ 555,937  
Schedule of Beneficial Conversion Feature for Derivative Treatment

The Company evaluated the embedded conversion feature for derivative treatment and recorded the following.

 

Face value of note   $ 590,000  
Derivative liability     (311,819 )
Amortize debt discount     178,182  
Balance at September 30, 2016   $ 456,363  
Schedule of Net Carrying Value of Notes

The net carrying value of the notes follows.

 

    September 30, 2016     December 31, 2015  
             
Face value of notes   $ 485,000     $ 750,000  
Unamortized debt discount     -       (2,860 )
Carrying value of notes   $ 485,000     $ 747,140  
Schedule of Convertible Promissory Note

The note is summarized as follows:

 

Cash received   $ 25,000  
OID     2,500  
Face amount of note     27,500  
Derivative liability     (23,190 )
Original carrying value of note     4,310  
Amortization of debt discount     6,442  
Carrying value of note at September 30, 2016   $ 10,752  
Summary of Loan Cost and Carrying Value

The note includes loan cost and the carrying value is summarized as follows:

 

    Loan cost     Carrying value  
Principal acquired from TCA           $ 23,325  
Accrued interest owed to TCA             4,981  
              28,306  
Loan cost             25,146  
Total value of note             53,452  
Derivative liability             (28,306 )
Amortize debt discount             786  
              25,932  
Loan cost   $ 25,146          
Loan cost amortization     (783 )        
Unamortized loan cost   $ 24,363       (24,363 )
Carrying value of convertible note           $ 1,569  
Senior Secured Credit Facility Agreement [Member]  
Schedule of Net Carrying Value of Notes

The carrying value of the note at September 30, 2016 is as follows:

 

    Current     Non-current     Total  
                   
Face value of notes   $ 308,748     $ -     $ 308,748  
Unamortized loan costs     (180,458 )     -       (180,458 )
Carrying value of notes   $ 128,290     $ -     $ 128,290