XML 18 R48.htm IDEA: XBRL DOCUMENT v3.19.3
CONVERTIBLE DEBT (Details Narrative) - USD ($)
1 Months Ended 3 Months Ended 6 Months Ended 9 Months Ended
Dec. 13, 2018
Dec. 12, 2018
Sep. 04, 2018
Jun. 17, 2019
Feb. 20, 2018
Feb. 19, 2018
Nov. 15, 2017
Sep. 30, 2019
Sep. 30, 2018
Mar. 31, 2018
Jun. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
May 17, 2019
Feb. 05, 2019
Jan. 07, 2019
Dec. 31, 2018
Apr. 24, 2018
Dec. 31, 2017
Convertible notes payable, principal amount               $ 2,919,286       $ 2,919,286              
Common stock, par value               $ 0.001       $ 0.001         $ 0.001    
Debt discount               $ 3,169,672       $ 3,169,672         $ 3,350,000    
Fair Value of Warrants                       157,969              
Debt outstanding amount               2,469,303       2,469,303         1,514,583    
Amortization of debt discount                       284,008 $ 2,834,620            
Beneficial conversion feature                       120,000 934,922            
Loss on extinguishment of debt                   1,464,698            
Outstanding principal balance               149,938       149,938              
Related Party Debt                     $ 1,071,479 508,085 1,529,472            
Placement agent [Member] | Roth Capital Partners, LLC [Member]                                      
Fair Value of Warrants     $ 157,969                                
Amortization of debt discount                       $ 184,100              
Proceeds from issuance of warrants     $ 140,000                                
Debt instrument maturity date     Mar. 04, 2019                                
Interest Rate                       5.00%              
Maturity period     5 years                                
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.                                
Installment fees                       $ 13,097              
Placement agent [Member] | Warrants [Member] | Roth Capital Partners, LLC [Member]                                      
Common stock shares issuable upon conversion of debt/convertible securities     26,056                                
Debt original issue discount     $ 140,000                                
Warrants exercise price     $ 6.00                                
Convertible Notes [Member]                                      
Debt discount               2,233,332       2,233,332              
Amortization of debt discount                       2,049,232              
Beneficial conversion feature                       1,333,333              
Outstanding principal balance               $ 261,903       $ 261,903              
Conversion price               $ 3.478       $ 3.478              
Convertible Notes [Member] | September 2018 [Member]                                      
Interest Rate                       5.00%              
Installment fees                       $ 31,905              
Event of Default Interest rate                       18.00%              
Convertible Notes [Member] | Third Exchange Agreement [Member]                                      
Convertible notes payable, principal amount               $ 638,095       $ 638,095              
Securities Purchase Agreement [Member] | InstitutionalInvestor [Member]                                      
Convertible notes payable, principal amount                           $ 1,500,000          
Common stock, par value                           $ 0.001          
Debt outstanding amount               1,500,000       1,500,000              
Customary events of default, description       The May 2019 Note includes customary Events of Default and provides that the Buyer may require the Company to redeem (regardless of whether the Event of Default has been cured) all or a portion of the Note 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 Buyer may also require redemption of the May 2019 Note 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 May 2019 Note at any time, in whole or in part, in cash at a price equal to 120% of the then outstanding conversion amount.                              
Common stock shares issuable upon conversion of debt/convertible securities                           250,000          
Legal fees       $ 30,000                              
Conversion price                           $ 6.00          
Accrued interest               25,334       25,334              
Amortization of interest expense                       $ 54,295              
Debt convertible conversion description       Conversion of the May 2019 Note is subject to a blocker provision which prevents any holder from converting the May 2019 Note 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.                              
Interest Rate       19.00%                              
Cash commission description                       Roth Capital Partners, LLC (“Roth”), as the Company’s exclusive placement agent, received a cash commission for this transaction equal to six (6%) percent of the total gross proceeds of the offering. This 6% fee or $90,000 was recorded as debt discount along with the $30,000 in legal fees associated with the May 2019 Note.              
Securities Purchase Agreement [Member] | Warrants [Member]                                      
Common stock, par value     $ 6.00       $ 5.00                        
Fair Value of Warrants     $ 910,078   $ 1,545,288                            
Conditional proceeds from sale of common stock under the agreement     $ 20,000                                
Common stock shares issuable upon conversion of debt/convertible securities     357,334   536,000   536,000                        
Proceeds from issuance of warrants             $ 2,686,000                        
Legal fees             $ 74,000                        
Debt instrument maturity date     Mar. 01, 2019                                
Exercise price     7.50                                
Debt original issue discount     $ 233,332                                
Amortization of interest expense         $ 347,418                            
Debt convertible conversion description     The New 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 New 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                                
Maturity period     5 years   5 years   5 years                        
Warrants exercise price         $ 7.50   $ 7.50                        
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 New 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”).                            
Securities Purchase Agreement [Member] | Leak-out Agreement [Member] | Warrants [Member]                                      
Convertible notes payable, principal amount             $ 3,350,000   103,611       103,611            
Debt discount                 $ 45,614       $ 45,614           $ 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.                        
Securities Purchase Agreement [Member] | Registration Rights Agreement [Member] | Warrants [Member]                                      
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 New Notes and Warrants pursuant to a registration rights agreement with the Buyers (the “Registration Rights Agreement”).                            
Debt instrument maturity date         Feb. 01, 2019                            
Securities Purchase Agreement [Member] | Institutional investors [Member] | September 2018 Notes [Member]                                      
Convertible notes payable, principal amount     $ 2,233,333                                
Common stock, par value     $ 0.001                                
Common stock shares issuable upon conversion of debt/convertible securities     372,223                                
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                                
Securities Purchase Agreement [Member] | Holder [Member] | September 2018 Notes [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”).                                
Customary events of default, description     The Note 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 Buyer may also require redemption of the May 2019 Note 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 May 2019 Note at any time, in whole or in part, in cash at a price equal to 120% of the then outstanding conversion amount.                                
Per-delivery shares issued     372,222                                
Debt instrument maturity date     Nov. 01, 2018                                
Debt original issue discount     $ 934,922                                
Securities Purchase Agreement [Member] | Senior Convertible Note 1 [Member] | Institutional investors [Member]                                      
Convertible notes payable, principal amount             $ 3,000,000                        
Securities Purchase Agreement [Member] | Senior Convertible Note 2 [Member] | Institutional investors [Member]                                      
Convertible notes payable, principal amount             $ 3,350,000                        
Securities Purchase Agreement [Member] | Senior Convertible Notes [Member]                                      
Common stock, par value             $ 0.001                        
Common stock shares issuable upon conversion of debt/convertible securities             670,000                        
Purchase price charged to financing costs             $ 240,000                        
Purchase price of financing cost             3,000,000                        
Debt original issue discount             $ 350,000                        
Exchange Agreements [Member] | Senior Convertible Notes [Member]                                      
Convertible notes payable, principal amount         $ 2,871,429                            
Common stock, par value         $ 5.00                            
Debt discount         $ 2,596,838                            
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”).                            
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                             108,417 465,625   670,001  
Exchange Agreements [Member] | New Notes [Member]                                      
Convertible notes payable, principal amount         3,216,000                            
Debt discount         3,216,000 $ 1,140,711                          
Amortization of debt discount           $ 405,743                          
Beneficial conversion feature         2,880,000                            
Loss on extinguishment of debt         1,464,698                            
Debt original issue discount         336,000                            
Adjustments to beneficial conversion feature and issue of debt discount         $ 1,739,289                            
Third Amendment and Exchange Agreements [Member]                                      
Convertible notes payable, principal amount               $ 261,902       $ 261,902         261,903    
Third Amendment and Exchange Agreements [Member]                                      
Convertible notes payable, principal amount                                 1,333,333    
Exercise price   6.00                                  
Repayment of principal                                 $ 638,095    
Warrants retired   536,000                                  
Conversion price                                 $ 3.478    
Third Amendment and Exchange Agreements [Member] | November 15, 2017 Securities Purchase Agreement [Member]                                      
Debt instrument maturity date   Dec. 11, 2023                                  
Warrants issued   727,683                                  
Third Amendment and Exchange Agreements [Member] | Post-modification [Member]                                      
Dividend yield   0.00%                                  
Exercise price   6                                  
Fair value of common stock   $ 6                                  
Expected volatility   113.62%                                  
Risk-free rate   2.77%                                  
Expected life   5 years                                  
Third Amendment and Exchange Agreements [Member] | Pre-modification [Member]                                      
Dividend yield   0.00%                                  
Exercise price   7.50                                  
Fair value of common stock   $ 6                                  
Expected volatility   243.69%                                  
Risk-free rate   2.77%                                  
Expected life   3 years 11 months 4 days                                  
Third Amendment and Exchange Agreements [Member] | September 4, 2018 Securities Purchase Agreement [Member]                                      
Related Party Debt   $ 1,333,333                                  
Conversion price   $ 3.478                                  
Debt modification expense $ 1,778,952                                    
Common stock issued 383,363