XML 70 R60.htm IDEA: XBRL DOCUMENT v3.19.1
CONVERTIBLE DEBT (Details Narrative) - USD ($)
1 Months Ended 12 Months Ended
Dec. 13, 2018
Dec. 12, 2018
Sep. 04, 2018
Feb. 20, 2018
Feb. 19, 2018
Nov. 15, 2017
Dec. 31, 2018
Dec. 31, 2017
Apr. 24, 2018
Convertible notes payable, principal amount             $ 2,919,286    
Common stock, par value             $ 0.001 $ 0.001  
Debt discount             $ 3,169,672 $ 3,350,000  
Fair Value of Warrants             157,969 368,003  
Debt outstanding amount             1,514,583  
Amortization of debt discount         $ 392,272   3,124,058 360,890  
Purchase price of financing cost             25,202  
Beneficial conversion feature             386,062    
Loss on extinguishment of debt             (1,464,698)    
Outstanding principal balance             $ 149,938    
Dividend yield              
Related Party Debt             $ 2,408,965 $ 817,040  
Third Amendment and Exchange Agreements [Member]                  
Exercise price   $ 6.00              
Warrants retired   536,000              
Warrants [Member] | Securities Purchase Agreement [Member]                  
Common stock shares issuable upon conversion of debt/convertible securities     357,334 536,000   536,000      
Common stock, par value     $ 6.00     $ 5.00      
Proceeds from issuance of warrants           $ 2,686,000      
Legal fees           $ 74,000      
Debt instrument maturity date     Mar. 01, 2019            
Maturity period     5 years 5 years   5 years      
Warrants exercise price       $ 7.50   $ 7.50      
Fair Value of Warrants     $ 910,078 $ 1,545,288          
Terms of Blocker Provision     The Notes or the Warrants, into shares of common stock if its beneficial ownership of the common stock would exceed 9.99% of the Company’s issued and outstanding common stock (a “Blocker”). A blocker provision which prevents any holder from converting or exercising, as applicable, the Notes or the Warrants, into shares of Common Stock if its beneficial ownership of the Common Stock would exceed 4.99% (subject to adjustment not to exceed 9.99%) of the Company’s issued and outstanding Common Stock (each, a “Blocker”).          
Conditional proceeds from sale of common stock under the agreement     $ 20,000            
Debt original issue discount     $ 233,332            
Amortization of interest expense       $ 347,418          
Debt convertible conversion description     The Notes and Warrants on any trading day to not more than such Buyer’s pro rata allocation of the greater of (x) sales with net proceeds of an aggregate of $20,000 or (y) twenty-five (25%) percent of the daily average trading volume of the Company’s Common Stock. If after the closing of the Financing the VWAP of the Company’s common stock for three (3) trading days is less than $1.50 per share, the Company may further restrict the Buyers from selling at less than $1.50 per share            
Exercise price     $ 7.50            
Roth Capital Partners, LLC [Member] | Placement agent [Member]                  
Proceeds from issuance of warrants     $ 140,000            
Debt instrument maturity date     Mar. 04, 2019            
Maturity period     5 years            
Fair Value of Warrants     $ 157,969            
Terms of Blocker Provision     will receive seven (7%) percent of any cash proceeds received from the exercise of any Warrants sold in the offering with an expiration equal to or less than twenty-four (24) months.            
Roth Capital Partners, LLC [Member] | Placement agent [Member] | Warrants [Member]                  
Common stock shares issuable upon conversion of debt/convertible securities     26,056            
Warrants exercise price     $ 6.00            
Debt original issue discount     $ 140,000            
November 15, 2017 Securities Purchase Agreement [Member] | Third Amendment and Exchange Agreements [Member]                  
Debt instrument maturity date   Dec. 11, 2023              
Warrants issued   727,683              
September 4, 2018 Securities Purchase Agreement [Member] | Third Amendment and Exchange Agreements [Member]                  
Related Party Debt   $ 1,333,333              
Conversion price   $ 3.478              
Debt modification expense $ 1,778,952                
Common stock issued 383,363                
Leak-out Agreement [Member] | Warrants [Member] | Securities Purchase Agreement [Member]                  
Convertible notes payable, principal amount           $ 3,350,000      
Debt discount               240,000  
Fair Value of Warrants               $ 386,003  
Terms of agreement       As a condition to the closing of the Financing, each Buyer, severally, was required to execute a leak-out agreement (each, a “Leak-Out Agreement”) restricting such Buyer’s sale of shares of Common Stock underlying the Notes and Warrants on any Trading Day to not more than such Buyer’s pro rata allocation of the greater of (x) sales with net proceeds of an aggregate of $20,000 or (y) twenty-five (25%) percent of the daily average trading volume of the Company’s Common Stock. If after the closing of the Financing there is no Event of Default under the Notes, the VWAP of the Company’s Common Stock for three (3) trading days is less than $1.50 per share, the Company may further restrict the Buyers from selling at less than $1.50 per share; provided that the portion of the Notes subject to redemption on each Installment Date shall thereafter double.          
Conditional proceeds from sale of common stock under the agreement       $ 20,000          
Terms of commission to placement agent           Placement agent, received a cash commission for the transaction equal to eight (8%) percent of the total gross proceeds of the offering, or $240,000 and the issuance of five-year warrants to purchase eight (8%) percent of the shares of common stock issued or issuable in this offering (excluding shares of common stock issuable upon exercise of any warrants issued to investors), or 53,600 shares; and, will receive eight (8%) percent of any cash proceeds received from the exercise of any warrants sold in the offering with an expiration equal to or less than twenty-four (24) months.      
Post-modification [Member] | Third Amendment and Exchange Agreements [Member]                  
Exercise price   $ 6              
Fair value of common stock   $ 6              
Expected volatility   113.62%              
Dividend yield   0.00%              
Risk-free rate   2.77%              
Expected life   5 years              
Pre-modification [Member] | Third Amendment and Exchange Agreements [Member]                  
Exercise price   $ 7.50              
Fair value of common stock   $ 6              
Expected volatility   243.69%              
Dividend yield   0.00%              
Risk-free rate   2.77%              
Expected life   3 years 11 months 4 days              
Registration Rights Agreement [Member] | Warrants [Member] | Securities Purchase Agreement [Member]                  
Debt instrument maturity date       Feb. 01, 2019          
Terms of agreement       The Company filed, within thirty (30) days of the Closing, a registration statement covering one hundred fifty (150%) percent of the maximum number of shares, underlying the Notes and Warrants pursuant to a registration rights agreement with the Buyers (the “Registration Rights Agreement”).          
September 2018 Notes [Member] | Holder [Member] | Warrants [Member] | Securities Purchase Agreement [Member]                  
Common stock, par value     $ 6.00            
Event of default conversion price, description     Upon an Event of Default (regardless of whether such event has been cured), the Buyers may convert at an alternative conversion price equal to the lower of the then applicable Conversion Price or seventy-five (75%) percent of the then Volume-Weighted Average Price (as defined, the “VWAP”).            
Debt instrument maturity date     Nov. 01, 2018            
Customary events of default, description     The Notes at a redemption premium of one hundred twenty-five (125%) percent, multiplied by the greater of the conversion rate and the then current market price. The Buyers may also require redemption of the Notes upon a Change of Control (as defined) at a premium of one hundred twenty-five (125%) percent. The Company has the right to redeem the Notes at any time, in whole or in part, in cash at a price equal to 120% of the then outstanding conversion amount.            
Debt original issue discount     $ 934,922            
Per-delivery shares issued     372,222            
September 2018 Notes [Member] | Institutional investors [Member] | Securities Purchase Agreement [Member]                  
Convertible notes payable, principal amount     $ 2,233,333            
Common stock shares issuable upon conversion of debt/convertible securities     372,222            
Common stock, par value     $ 0.001            
Proceeds from issuance of warrants     $ 1,845,000            
Legal fees     $ 15,000            
Debt instrument maturity date     May 01, 2019            
Purchase price charged to financing costs     $ 140,000            
Purchase price of financing cost     $ 2,000,000            
Exercise price     $ 7.50            
Convertible Notes [Member]                  
Debt discount             2,233,332    
Amortization of debt discount             2,049,232    
Beneficial conversion feature             1,333,333    
Outstanding principal balance             $ 261,903    
Conversion price             $ 3.478    
Convertible Notes [Member] | Third Exchange Agreement [Member]                  
Convertible notes payable, principal amount             $ 638,095    
Convertible Notes [Member] | September 2018 [Member]                  
Event of Default Interest rate             18.00%    
Installment fees             $ 31,905    
Interest Rate             5.00%    
New Notes [Member] | Exchange Agreements [Member]                  
Convertible notes payable, principal amount       $ 3,216,000          
Debt discount       3,216,000 1,140,711        
Amortization of debt discount         $ 405,743        
Debt original issue discount       336,000          
Beneficial conversion feature       2,880,000          
Loss on extinguishment of debt       1,464,698          
Adjustments to beneficial conversion feature and issue of debt discount       1,739,289          
Senior Convertible Notes [Member] | Securities Purchase Agreement [Member]                  
Common stock shares issuable upon conversion of debt/convertible securities           670,000      
Common stock, par value           $ 0.001      
Debt original issue discount           $ 350,000      
Purchase price charged to financing costs           240,000      
Purchase price of financing cost           3,000,000      
Senior Convertible Notes [Member] | Exchange Agreements [Member]                  
Convertible notes payable, principal amount       $ 2,871,429          
Common stock, par value       $ 5.00          
Convertible debt, description       The Company evaluated the debt modification in accordance with ASC 470-50 and concluded that the debt qualified for debt extinguishment as the 10% cash flow test was met.          
Event of default conversion price, description       Upon an Event of Default (as defined), the Buyers may convert at an alternative conversion price equal to the lower of the then applicable Conversion Price or seventy-five (75%) percent of the Volume-Weighted Average Price (as defined, the “VWAP”).          
Debt discount       $ 2,596,838          
Customary events of default, description       The Notes include customary Events of Default and provide that the Buyers may require the Company to redeem (regardless of whether the Event of Default has been cured) all or a portion of the Notes at a redemption premium of one hundred twenty-five (125%) percent, multiplied by the greater of the conversion rate and the then current market price. The Buyers may also require redemption of the Notes upon a Change of Control (as defined) at a premium of one hundred twenty-five (125%) percent.          
Existing note description       (i) the New Note was not convertible into shares of the Company’s common stock (the “Common Stock”) until April 20, 2018; (ii) all future cash installment payments under such New Note will be made at a redemption price equal to 112% of the applicable installment amount; (iii) the Company’s existing obligation to initially deliver pre-delivery shares of its common stock to the holder of such New Note was deferred until April 20, 2018; and (iv) at any time on or before June 20, 2018, the Company had the right, at its option, to redeem all, or any part, of the amounts then outstanding under such New Note in cash at a redemption price equal to 125% of such amounts then outstanding under such New Note.          
Cash proceeds received by holders       85.00%          
Additional paid in capital       $ 1,140,711          
Aggregate indebtedness       $ 12,000,000          
Per-delivery shares issued                 670,001
Senior Convertible Note 2 [Member] | Institutional investors [Member] | Securities Purchase Agreement [Member]                  
Convertible notes payable, principal amount           3,350,000      
Senior Convertible Note 1 [Member] | Institutional investors [Member] | Securities Purchase Agreement [Member]                  
Convertible notes payable, principal amount           $ 3,000,000