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Related Party Subordinated Convertible Notes Payable
9 Months Ended
Sep. 30, 2017
Related Party Transactions [Abstract]  
Related Party Subordinated Convertible Notes Payable

NOTE 4 — Related Party Subordinated Convertible Notes Payable

 

The Company’s Subordinated Convertible Notes of $752,625 matured on September 4, 2017. At the option of the note holders, note payable principal and accrued interest totaling $1,216,109 was converted into 972,884 shares of common stock at a conversion rate of $1.25 per share. The conversion reduces current liabilities and increases stockholders’ equity by $1,216,109. These 4-year notes were originally issued on September 4, 2013 to officers and directors of the company and converted into common stock at maturity pursuant to the terms of the notes.

 

At December 31, 2016, accrued interest of all convertible notes was $382,808 and was included in Accounts Payable and Accrued Expenses.

 

Interest expense for the three and nine months ended September 30, 2017 was $22,179 and $80,676, respectively. Interest expense for the three and nine months ended September 30, 2016 was $27,836 and $88,840, respectively.