SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2017

NOTE 17. SUBSEQUENT EVENTS

Effective April 17, 2017, we entered into a $400,000 term note with RBL based on a draw down from the line of credit. The term note provides for interest-only payments at 14.4% through May 20, 2017 of $5,208. From June 20, 2017 through May 20, 2021 (maturity date), we are obligated to make interest and principal payments of $11,011 per month. We paid $8,000 in costs related to this loan at its inception and another $16,000 of costs is due at the maturity of the note.

On April 26, 2017, we exchanged 102,351 shares of our common stock for $75,000 of the original $3,315,000 RBL promissory note partially purchased by Crede, based on an average per share exchange price of $0.73. The exchange also settled current interest and loan fees of $4,500 and a non-cash exchange premium of $9,951.

On April 26, 2017, the $4,044,056 term note with RBL entered into on December 20, 2016 was revised to reflect the $75,000 exchange transaction mentioned above. As a result the note was updated to reflect a principal payment and interest payment of $108,759 beginning June 20, 2017.

As of the date of this filing, we are in negotiations for payments terms associated with the $1.8 million balloon payment due May 20, 2017 for the stock fair value true-up payment relating to the acquisition of PayOnline.