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Note 4 - Short-Term Related Party Convertible Notes Payable
6 Months Ended
Jun. 30, 2018
Related Party Transactions [Abstract]  
Short-Term Related Party Convertible Notes Payable

NOTE 4 — Short Term Related Party 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 reduced current liabilities and increased 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. Accrued interest was $441,306 at June 30, 2017 and was included in Accounts Payable and Accrued Expenses. Interest expense on these convertible notes for the three and six months ended June 30, 2017 was $29,789 and $58,497, respectively.