XML 20 R9.htm IDEA: XBRL DOCUMENT v3.7.0.1
Short Term Related Party Convertible Notes Payable
6 Months Ended
Jun. 30, 2017
Related Party Transactions [Abstract]  
Short Term Related Party Convertible Notes Payable

NOTE 4 — Short Term Related Party Convertible Notes Payable

 

Short Term Related Party Convertible Notes Payable

The balance of short term convertible notes payable to officers and directors of the company is $752,625 at June 30, 2017 and December 31, 2016. $380,696 of these notes have an original term of four years that accrue interest at 8% per annum compounded quarterly, mature on September 4, 2017, and have a note holder call provision. $371,929 has an original term of four years that accrued interest at 18% per annum compounded quarterly through March 30, 2016 and at 12% thereafter, matures on September 4, 2017, and does not have a note holder call provision. Accrued interest for all convertible notes was $441,306 and $382,808 at June 30, 2017 and December 31, 2016, respectively and was included in Accounts Payable and Accrued Expenses. Interest expense for the three and six months ended June 30, 2017 was $29,789 and $58,497, respectively. Interest expense for the three and six months ended June 30, 2016 was $26,823 and $61,004, respectively. The notes and accrued interest are convertible into common stock at the option of the holder at $1.25 per share. The convertible notes are secured by all of the assets of the Company and are subordinated to amounts outstanding under the Company’s working capital bank line of credit with the Company’s bank.