XML 37 R26.htm IDEA: XBRL DOCUMENT

Notes Payable and Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Notes Payable and Long-Term Debt

As of June 30, 2019 and December 31, 2018, notes payable and long-term debt consists of:

	June 30, 2019		December 31, 2018
Note payable to former officer due in four equal annual installments of $25,313 on April 28 of each year; past due in 2016 and 2017; accruing interest at 6% per annum since April 28, 2016 on the past due portion	$	20,000	$	70,000
Notes payable to seller of DigitizeIQ, LLC due as noted below ¹		485,000		485,000
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 ²		27,500		27,500
	$	532,500	$	582,500

Notes due seller of DigitizeIQ, LLC includes a series of notes as follows:

	●	A second non-interest-bearing Promissory Note made payable to the Seller in the amount of $250,000, which was due on January 12, 2016; (Balance at June 30, 2019 and December 31, 2018 - $235,000).

	●	A third non-interest-bearing Promissory Note made payable to the Seller in the amount of $250,000, which was due on March 12, 2016 and remains unpaid as of June 30, 2019.

The Company is renegotiating the terms of the notes. The notes bear interest at 5% per annum when in default (after the due date). The notes were non-interest bearing until due. Accordingly, a debt discount at 5% per annum was calculated for the notes and was amortized to interest expense until the due date of the notes.

²Convertible note payable to River North Equity, LLC (“RNE”) - The Company evaluated the embedded conversion for derivative treatment and recorded an initial derivative liability and debt discount of $23,190. The debt discount is fully amortized.