|
8.
cONVERTIBLE NOTEs PAYABLE
Convertible notes payable
are summarized as follows.
| |
|
September 30, 2016 |
|
|
December 31, 2015 |
|
| |
|
|
|
|
|
|
| 6% Convertible notes payable issued in August 2013 |
|
$ |
3,000,000 |
|
|
$ |
3,000,000 |
|
| Discounts on above convertible note |
|
|
- |
|
|
|
(583,341 |
) |
| Discounts on above convertible note |
|
|
- |
|
|
|
- |
|
| 8% Convertible notes payable issued in Nov/Dec 2014 |
|
|
100,000 |
|
|
|
100,000 |
|
| Discounts on above convertible note |
|
|
- |
|
|
|
- |
|
| 8% Convertible notes payable issued in January 2015 |
|
|
150,000 |
|
|
|
150,000 |
|
| Discounts on above convertible note |
|
|
(58,503 |
) |
|
|
(93,231 |
) |
| 8% Convertible notes payable issued in January 2015 |
|
|
475,000 |
|
|
|
475,000 |
|
| Discounts on above convertible note |
|
|
(62,317 |
) |
|
|
(238,152 |
) |
| Total Convertible notes payable |
|
|
3,604,180 |
|
|
|
2,810,276 |
|
| Current portion of convertible notes payable |
|
|
(3,604,180 |
) |
|
|
(2,810,276 |
) |
| Convertible notes payable, less current portion |
|
$ |
- |
|
|
$ |
- |
|
The convertible notes were
classified as current liabilities on the accompanying Condensed Consolidated Balance Sheets as of September 30, 2016 and December
31, 2015 due to certain technical defaults pursuant to the convertible note agreements.
For the Nine Months ended
September 30, 2016 and 2015 amortization of debt discount was $793,904 and $1,356,365 respectively.
See Note 16 “Subsequent
Events.”
|