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Note 8 - Convertible Notes Payable
 9 Months Ended
Sep. 30, 2019
Notes to Financial Statements  
Convertible Notes Payable [Text Block]
8.
Convertible Notes Payable
 
On
May 21, 2019,
the Company issued an
8%
Fixed Convertible Promissory Note payable to a
third
party for a total face value up to
$550,000,
which included an original issue discount of
10%
on the investment amount of up to
$500,000.
The note specifies that the note holder shall retain an original issue discount of
10%
of any consideration, bears interest of
8%,
and matures
180
days from the effective date. If the Company prepays the note within
90
days, the Company must pay a cash redemption premium of
110%;
if such prepayment is made between the
91st
day and the
180th
day, then such redemption premium is
115%.
The note holder paid the
first
consideration of
$350,000
was allowed
thirty
days to pay additional consideration, however
no
further consideration was remitted within the
thirty
days. Until maturity, the note holder
may
convert all or a portion of the outstanding principal into shares of Common Stock of the Company at a fixed conversion price equal to
$1.95
per share. If the note is
not
retired on or before the maturity date, the note holder
may
convert a portion or all the outstanding principle into shares of the Company’s common stock at a variable conversion price which equals the lower of the fixed conversion price or
65%
of the lowest closing bid price during the
15
consecutive trading days prior to the date of the note holder’s election to convert.
 
On
July 17, 2019,
the Company issued an
8%
Fixed Convertible Promissory Note payable to a
third
party for a total face value of
$165,000,
which included an original issue discount of
10%
on the investment amount of
$150,000
.
The note specifies that the note holder shall retain an original issue discount of
10%
of any consideration, bears interest of
8%,
and matures
180
days from the effective date. If the Company prepays the note within
90
days, the Company must pay a cash redemption premium of
110%;
if such prepayment is made between the
91st
day and the
180th
day, then such redemption premium is
115%.
Until maturity, the note holder
may
convert all or a portion of the outstanding principal into shares of Common Stock of the Company at a fixed conversion price equal to
$1.95
per share. If the note is
not
retired on or before the maturity date, the note holder
may
convert a portion or all the outstanding principle into shares of the Company’s common stock at a variable conversion price which equals the lower of the fixed conversion price or
65%
of the lowest closing bid price during the
15
consecutive trading days prior to the date of the note holder’s election to convert.