XML 30 R13.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Loans Payable | 3 Months Ended
--- | ---
Mar. 31, 2018
Loans Payable [Abstract] |
LOANS PAYABLE | NOTE 8: LOANS PAYABLE The outstanding debt with detachable warrants, as applicable, are shown in the table below. Further discussion of the notes follows.
Issuance Date |  | Original Principal |  |  | Additional Principal |  |  | Total Principal |  |  | Maturity Date |  | Warrants |  |  | `
1/16/2018 |  | $ | 1,000 |  |  | $ | - |  |  |  | 1,000 |  |  | 1/16/2019 |  |  | 1,851,851 |  |  | 8.0% interest
8/17/2016 |  |  | 3,000 |  |  |  | - |  |  |  | 3,000 |  |  | 8/17/2019 |  |  | 17,647,056 |  |  | 8.0% interest
6/29/2016 |  |  | 50 |  |  |  | 2 |  |  |  | 52 |  |  | 5/25/2019 |  |  | 89,286 |  |  | 14% interest - 12% cash, 2% added to principal
6/13/2016 |  |  | 200 |  |  |  | 20 |  |  |  | 220 |  |  | 5/25/2019 |  |  | 357,143 |  |  | 14% interest - 12% cash, 2% added to principal
6/13/2016 |  |  | 250 |  |  |  | 15 |  |  |  | 265 |  |  | 5/25/2019 |  |  | 446,429 |  |  | 14% interest - 12% cash, 2% added to principal
5/3/2016 |  |  | 500 |  |  |  | 20 |  |  |  | 520 |  |  | 5/25/2019 |  |  | 892,857 |  |  | 14% interest - 12% cash, 2% added to principal
12/28/2015 |  |  | 150 |  |  |  | 7 |  |  |  | 157 |  |  | 5/25/2019 |  |  | 267,857 |  |  | 14% interest - 12% cash, 2% added to principal
12/28/2015 |  |  | 500 |  |  |  | 23 |  |  |  | 523 |  |  | 5/25/2019 |  |  | 892,857 |  |  | 14% interest - 12% cash, 2% added to principal
12/28/2015 |  |  | 600 |  |  |  | 28 |  |  |  | 628 |  |  | 5/25/2019 |  |  | 1,071,429 |  |  | 14% interest - 12% cash, 2% added to principal
10/26/2015 |  |  | 300 |  |  |  | 15 |  |  |  | 315 |  |  | 5/25/2019 |  |  | 535,714 |  |  | 14% interest - 12% cash, 2% added to principal
10/15/2015 |  |  | 150 |  |  |  | 7 |  |  |  | 157 |  |  | 5/25/2019 |  |  | 267,857 |  |  | 14% interest - 12% cash, 2% added to principal
10/15/2015 |  |  | 500 |  |  |  | 25 |  |  |  | 525 |  |  | 5/25/2019 |  |  | 892,857 |  |  | 14% interest - 12% cash, 2% added to principal
6/23/2015 |  |  | 400 |  |  |  | 23 |  |  |  | 423 |  |  | 5/25/2019 |  |  | 640,000 |  |  | 14% interest - 12% cash, 2% added to principal
6/23/2015 |  |  | 119 |  |  |  | 34 |  |  |  | 153 |  |  | 5/25/2019 |  |  | 935,210 |  |  | Refinanced May 20, 2015 debt, 14% interest*
5/20/2015 |  |  | 465 |  |  |  |  |  |  |  | 465 |  |  | 5/25/2019 |  |  | 762,295 |  |  | 14% interest - 12% cash, 2% added to principal
|  | $ | 8,184 |  |  | $ | 219 |  |  | $ | 8,403 |  |  |  |  |  | 27,550,698 |  |  |
Debt discount |  |  |  |  |  |  |  |  |  |  | (1,837 | ) |  |  |  |  |  |  |  |
Total debt |  | $ | 8,184 |  |  |  |  |  |  | $ | 6,566 |  |  |  |  |  |  |  |  |
* 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. Term Notes On August 17, 2016, we entered into a Loan and Security Agreement with Slipstream Communications, LLC (“Slipstream”), a related party (see Note 10), and obtained a $3.0 million term loan, with interest thereon at 8% per annum. The loan currently matures August 17, 2019. 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. On January 16, 2018, we entered into the Third Amendment to the Loan and Security Agreement with Slipstream and obtained a $1.0 million revolving loan, with interest thereon at 8% per annum, maturing on January 16, 2019. In connection with the loan, we issued Slipstream a five-year warrant to purchase up to 1,851,851 shares of Creative Realities’ common stock at a per share price of $0.27 (subject to adjustment). The fair value of the warrants was $266, which is accounted for as an additional debt discount and amortized over the remaining life of the loan. Our principal subsidiaries – Creative Realities, Inc., Creative Realities, LLC, and Conexus World Global, LLC – are co-makers of the secured convertible promissory notes. See Note 12 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 are set forth in the table above and are discussed in further detail below. 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, Creative Realities Canada, Inc., and Conexus World Global, LLC — are 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. Obligations under the secured convertible promissory notes are secured by a grant of collateral security in all 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. 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 issued in connection with such notes. On August 10, 2017, Slipstream extended the maturity date of all the promissory notes to October 15, 2018. The change was accounted for as a modification of the debt. On November 13, 2017, Slipstream elected to extend the maturity date of the convertible promissory notes on a rolling quarter addition basis to January 15, 2019, which is now extended to May 25, 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 13 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, which the Company subsequently revised pursuant to ASU 2017-11 to be $4. This note was subsequently purchased by Slipstream on December 22, 2016. See Note 2 for details on the effect this ASU had on the Company’s financial statements. 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 was accounted for as a modification of the debt. The fair value of the warrants on the issuance date was $57, which the Company subsequently revised pursuant to ASU 2017-11 to be $40. On December 20, 2016, $200 of this note was subsequently purchased by Slipstream; the remaining $250 was already owed to Slipstream. See Note 2 for details on the effect this ASU had on the Company’s financial statements. 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, which the Company subsequently revised pursuant to ASU 2017-11 to be $60. This note was subsequently purchased by Slipstream on December 22, 2016. See Note 2 for details on the effect this ASU had on the Company’s financial statements.

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