Quarterly report pursuant to Section 13 or 15(d)

Notes Payable

v3.8.0.1
Notes Payable
3 Months Ended
Mar. 31, 2018
Debt Disclosure [Abstract]  
Notes Payable [Text Block]
Note 5 — Notes Payable
 
The Company entered into two debt instruments with current maturities of less than one year during the three months ended March 31, 2018. The Company’s debt as of March 31, 2018 and December 31, 2017, net of debt discounts of $229,365 and $0, respectively, consisted of the following:
 
 
 
March 31,
 
December 31,
 
 
 
2018
 
2017
 
BHP Capital, 20% Original Issue Discount Debenture due July 2018, 0% interest
 
$
162,679
 
$
-
 
Horberg, 10% Original Issue Discount Senior Note due June 2018, 0% interest
 
 
307,956
 
 
-
 
Total notes payable
 
$
470,635
 
$
-
 
 
The debenture and senior note holders are entitled to receive 20,000 shares and 13,500 shares upon completion of the Company’s IPO, respectively. The fair value of the shares to be issued was $167,500 which has been accrued with a corresponding reduction to the debt liability and will be amortized through interest expense. The Company will issue these shares as soon as administratively possibles.