XML 31 R12.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Loans Payable | 12 Months Ended
--- | ---
Dec. 31, 2017
Loans Payable [Abstract] |
LOANS PAYABLE | NOTE 6: LOANS PAYABLE At the end of December 2016 and the beginning of January 2017, Slipstream Communications, LLC, a related party, see Note 8: Related Party Transactions, purchased all of our outstanding debt from the original debtholders. The terms of the debt have remained the same. The outstanding debt with detachable warrants are shown in the table below. Further discussion of the notes follows.
Issuance Date |  | Original Principal |  |  | Additional Principal |  |  | Total Principal |  |  | Maturity Date |  | Warrants |  |  |
8/17/2016 |  |  | 3,000 |  |  |  | - |  |  |  | 3,000 |  |  | 8/17/2019 |  |  | 17,647,056 |  |  | 8.0% interest
6/29/2016 |  |  | 50 |  |  |  | 2 |  |  |  | 52 |  |  | 4/10/2019 |  |  | 89,286 |  |  | 14% interest*
6/13/2016 |  |  | 200 |  |  |  | 19 |  |  |  | 219 |  |  | 4/10/2019 |  |  | 357,143 |  |  | 14% interest*
6/13/2016 |  |  | 250 |  |  |  | 14 |  |  |  | 264 |  |  | 4/10/2019 |  |  | 446,429 |  |  | 14% interest*
5/3/2016 |  |  | 500 |  |  |  | 17 |  |  |  | 517 |  |  | 4/10/2019 |  |  | 892,857 |  |  | 14% interest*
12/28/2015 |  |  | 150 |  |  |  | 6 |  |  |  | 156 |  |  | 4/10/2019 |  |  | 267,857 |  |  | 14% interest*
12/28/2015 |  |  | 500 |  |  |  | 20 |  |  |  | 520 |  |  | 4/10/2019 |  |  | 892,857 |  |  | 14% interest*
12/28/2015 |  |  | 600 |  |  |  | 24 |  |  |  | 624 |  |  | 4/10/2019 |  |  | 1,071,429 |  |  | 14% interest*
10/26/2015 |  |  | 300 |  |  |  | 13 |  |  |  | 313 |  |  | 4/10/2019 |  |  | 535,714 |  |  | 14% interest*
10/15/2015 |  |  | 150 |  |  |  | 7 |  |  |  | 157 |  |  | 4/10/2019 |  |  | 267,857 |  |  | 14% interest*
10/15/2015 |  |  | 500 |  |  |  | 23 |  |  |  | 523 |  |  | 4/10/2019 |  |  | 892,857 |  |  | 14% interest*
6/23/2015 |  |  | 400 |  |  |  | 21 |  |  |  | 421 |  |  | 4/10/2019 |  |  | 640,000 |  |  | 14% interest*
6/23/2015 |  |  | 119 |  |  |  | 31 |  |  |  | 150 |  |  | 4/10/2019 |  |  | 935,210 |  |  | Refinanced May 20, 2015 debt, 14% interest *
5/20/2015 |  |  | 465 |  |  |  | - |  |  |  | 465 |  |  | 4/10/2019 |  |  | 762,295 |  |  | 14% cash interest
|  | $ | 7,184 |  |  | $ | 197 |  |  | $ | 7,381 |  |  |  |  |  | 25,698,847 |  |  |
Debt discount |  |  |  |  |  |  |  |  |  |  | (1,916 | ) |  |  |  |  |  |  |  |
Total debt |  | $ | 7,184 |  |  |  |  |  |  | $ | 5,465 |  |  |  |  |  |  |  |  |
* 12% cash, 2% added to principal Obligations under the secured convertible promissory notes are secured by a grant of collateral security in all of the tangible assets of the co-makers pursuant to the terms of an amended and restated security agreement. Included in accrued expenses is unpaid interest of $295 on outstanding debt. Term Notes On December 12, 2016, we entered into a $1.0 million secured revolving promissory note pursuant to the August 17, 2016 Loan and Security Agreement with Slipstream Communications, LLC, a related party, addressed below (see Note 8), wherein we borrowed $786 with interest thereon at 8% per annum, maturing on February 1, 2017. In connection with the loan, we issued the lender a five-year warrant to purchase up to 1,542,452 shares of common stock at a per-share price of $0.28 (subject to adjustment), all pursuant to a securities purchase agreement. In connection with the secured revolving promissory note, we incurred fees aggregating $37. The fair value of the warrants on the issuance date was $136. This note was repaid on January 12, 2017. On August 17, 2016, we entered into a Loan and Security Agreement with Slipstream Communications, LLC, a related party (see Note 8), under which we obtained a $3.0 million term loan, with interest thereon at 8% per annum, maturing on August 17, 2017 (with a one-year option for us to extend that maturity, so long as we are not then in default and we deliver additional warrants to the lender). The term loan contains certain customary restrictions including, but not limited to, restrictions on mergers and consolidations with other entities, cancellation of any debt or incurring new debt (subject to certain exceptions), and other customary restrictions. In connection with this loan, we issued the lender a five-year warrant to purchase up to 5,882,352 shares of common stock shares of Creative Realities’ common stock at a per-share price of $0.28 (subject to adjustment), all pursuant to a securities purchase agreement. The proceeds from the loan were used to (i) satisfy the obligations owed to Allied Affiliated Lending, L.P. under the Factoring Agreement, (ii) pay off certain obligations under settlement arrangements in effect as of the date hereof (see Note 8), and (iii) obtain working capital. The Loan and Security Agreement permits the lender to make additional advances of up to an additional $1.0 million. In connection with this financing transaction, we terminated the Factoring Agreement with Allied Affiliated Lending. Our principal subsidiaries — Creative Realities, Inc., Creative Realities, LLC, Conexus World Global, LLC, and Broadcast International, Inc. — were also parties to the securities purchase agreement and are co-makers of the secured convertible promissory notes. In connection with the term loan, we incurred fees aggregating $20. The fair value of the warrants on the issuance date was $361. On August 10, 2017, Slipstream Communications, LLC extended the maturity date of the 8% senior notes to August 17, 2018. In exchange for the extension of the maturity date of the 8% senior notes, CRI provided 5,882,352 five-year warrants to purchase Company common shares. The fair value of the warrants was $1,240, which is accounted for as an additional debt discount and amortized over the remaining life of the loan. On November 13, 2017, Slipstream Communications, LLC extended the maturity dates for the term loan to August 17, 2019. In exchange for the extension of the maturity date of the 8% senior notes, CRI provided 5,882,352 five-year warrants to purchase Company common shares. The fair value of the warrants was $976, which is accounted for as an additional debt discount and amortized over the remaining life of the loan. See Note 11 for the Black Scholes inputs used to calculate the fair value of the warrants. Convertible Promissory Notes In December 2016 and January 2017, Slipstream Communications, LLC purchased all of our outstanding convertible promissory notes from the original debtholders. The terms of the notes have remained the same. Further discussion of the notes follows. The convertible promissory notes were issued in a private placement exempt from registration under the Securities Act of 1933. Our principal subsidiaries — Creative Realities, LLC, Wireless Ronin Technologies Canada, Inc., and Conexus World Global, LLC — were also parties to the Securities Purchase Agreement and are co-makers of the secured convertible promissory notes. Obligations under the secured convertible promissory notes are secured by a grant of collateral security in all of the personal property of the co-makers pursuant to the terms of a security agreement. The secured convertible promissory notes bear interest at the rate of 14% per annum. Of this amount, 12% per annum is payable monthly in cash, and the remaining 2% per annum is payable in the form an additional principal through increases in the principal amount of the note. Upon the consummation of a change in control transaction of the company or a default, interest on the secured convertible promissory note will increase to the rate of 17% per annum. On August 10, 2017, Slipstream Communications, LLC extended the maturity date of the convertible notes to October 15, 2018. On November 13, 2017, Slipstream Communications, LLC elected to extend the maturity date of the convertible promissory notes on a rolling quarter addition basis to January 15, 2019, which is now April 10, 2019. At any time prior to the maturity date, the holder of a promissory note may convert the outstanding principal and accrued and unpaid interest into our common stock at its conversion rate. We may not prepay the secured convertible promissory note prior to the maturity date. The secured convertible promissory note contains other customary terms. See Note 11 for the Black Scholes inputs used to calculate the fair value of the warrants. On June 29, 2016, we entered into a secured convertible promissory note in the principal amount of $50 and an immediately exercisable five-year warrant to purchase up to 89,286 shares of the Company’s common stock at a per-share price of $0.28 (subject to adjustment). The fair value of the warrants on the issuance date was $6. This note was subsequently purchased by Slipstream Communications, LLC on December 20, 2016. On June 13, 2016, upon receipt of an additional $300 of principal, we exchanged two short term demand notes entered into in July 2015 totaling $150 for two secured convertible promissory notes totaling a principal amount of $450 and immediately exercisable five-year warrants to purchase up to 803,572 shares of the Company’s common stock at a per-share price of $0.28 (subject to adjustment). This exchange is accounted for as a modification of the debt. The fair value of the warrants on the issuance date was $57. On December 20, 2016, $200 of this note was subsequently purchased by Slipstream Communications, LLC, the remaining $250 was already owed to Slipstream Communications, LLC. On or about May 3, 2016, we entered into a secured convertible promissory note in the principal amount of $500,000 and an immediately exercisable five-year warrant to purchase up to 892,857 shares of the Company’s common stock at a per-share price of $0.28 (subject to adjustment). In connection with the secured convertible promissory note, we incurred commissions to a placement agent aggregating $25. The fair value of the warrants on the issuance date was $89. This note was subsequently purchased by Slipstream Communications, LLC on December 22, 2016.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration