| Notes payable |
| |
|
December
31,
2017
|
|
|
December
31,
2016
|
|
| Unsecured
promissory demand notes issued to an accredited investor, which bear interest at a rate of 4% per annum. Holder may elect
to convert into common stock at $11.25 per share. The balance of the note and accrued interest was converted into common stock
in April 2017. |
|
$ |
- |
|
|
$ |
64,324 |
|
| Convertible
promissory note dated December 14, 2015, issued to accredited investors, which matured December 13, 2016 and bears interest
at a rate of 12% per annum. The holder of the note extended the maturity to December 13, 2017. The conversion price is $1.82,
subject to adjustment. The balance of the note and accrued interest was converted into common stock in July 2017. |
|
|
- |
|
|
|
500,000 |
|
| Senior
convertible promissory note dated October 28, 2016, issued to accredited investors, which matures April 28, 2018 and bears
interest at a rate of 1% per annum. The conversion price is 90% of the average of the lowest three (3) VWAPs for the five
(5) consecutive trading days prior to the conversion date. The balance of the note and accrued interest was converted into
common stock in January 2017. |
|
|
- |
|
|
|
102,582 |
|
| Senior
convertible promissory note dated November 1, 2016, issued to accredited investors, which matures May 1, 2018 and bears interest
at a rate of 12% per annum. The conversion price is $5.25, subject to adjustment. The balance of the note and accrued interest
was converted into common stock in July 2017. |
|
|
- |
|
|
|
31,615 |
|
| Senior
convertible promissory note dated December 16, 2016, issued to accredited investors, which matures June 16, 2018 and bears
interest at a rate of 12% per annum. The conversion price is $4.05, subject to adjustment. The balance of the note and accrued
interest was converted into common stock in May 2017. |
|
|
- |
|
|
|
1,220,155 |
|
| Senior
convertible promissory note dated August 21, 2017, issued to accredited investors, which matures February 21, 2019 and bears
interest at a rate of 12% per annum. The conversion price is $4.50, subject to adjustment. |
|
|
640,010 |
|
|
|
- |
|
| Senior
convertible promissory note dated December 26, 2017, issued to accredited investors, which matures June 26, 2019 and bears
interest at a rate of 12% per annum. The conversion price is $4.50, subject to adjustment. |
|
|
1,469,388 |
|
|
|
- |
|
| Promissory
note dated November 22, 2017, issued for the purchase of real property. Matures December 1, 2020, with an option to extend
the maturity date 1 year. The promissory note bears interest at 12.0% for year one and escalates 0.5% per year thereafter
up to 13.5% |
|
|
4,500,000 |
|
|
|
- |
|
| Total
Debt |
|
|
6,609,398 |
|
|
|
1,918,676 |
|
| |
|
|
|
|
|
|
|
|
| Less
Short-Term Portion |
|
|
- |
|
|
|
564,324 |
|
| |
|
|
|
|
|
|
|
|
| Long-Term
Portion |
|
$ |
6,609,398 |
|
|
$ |
1,354,352 |
|
|
| Conversion of the notes payable |
| |
|
Year
Ended December 31, |
|
| |
|
2017 |
|
|
2016 |
|
|
2015 |
|
| Fair
market value of common stock issued upon conversion |
|
$ |
29,785,271 |
|
|
$ |
18,887,399 |
|
|
$ |
1,493,659 |
|
| Principal
amount of debt converted |
|
|
(19,314,324 |
) |
|
|
(13,324,973 |
) |
|
|
(900,000 |
) |
| Accrued
interest converted |
|
|
(635,401 |
) |
|
|
(233,415 |
) |
|
|
(108,000 |
) |
| Fair
value of derivative at conversion date |
|
|
(14,223,550 |
) |
|
|
(10,361,100 |
) |
|
|
(374,600 |
) |
| Debt
discount value at conversion date |
|
|
11,532,292 |
|
|
|
10,414,902 |
|
|
|
508,385 |
|
| Loss
on extinguishment of debt |
|
$ |
7,144,288 |
|
|
$ |
5,382,813 |
|
|
$ |
619,444 |
|
|