Annual report pursuant to Section 13 and 15(d)

Notes Payable (Tables)

Notes Payable (Tables)
12 Months Ended
Dec. 31, 2016
Debt Disclosure [Abstract]  
Schedule of Notes Payable

The Company has the following notes payable as of December 31, 2016 and December 31, 2015:


Note   Note Date   Maturity Date   Interest Rate     Original Borrowing     Balance at
December 31, 2016
    Balance at
December 31, 2015
Note payable (a)   March 21, 2015   March 20, 2017     12.0 %   $ 125,000     $ 125,000     $ 125,000  
Note payable (b)   December 15, 2016   Due upon demand     5 %   $ 101,300       101,300       -  
Total notes payable                             226,300       125,000  
Debt discount                             (48,942 )     -  
Total notes payable, net of debt discount                   $ 177,358     $ 125,000  


  (a) March 21, 2015 – The Company entered into an agreement with DelMorgan Group LLC (“DelMorgan”), pursuant to which DelMorgan agreed to act as the Company’s exclusive financial advisor. In connection with the agreement, the Company paid DelMorgan $125,000, which was advanced by a third-party lender in exchange for an unsecured note payable issued by the Company bearing interest at the rate of 12% per annum payable monthly beginning on April 20, 2015. The note payable is due on the earlier of March 20, 2017, or upon completion of a private placement transaction, as defined in the agreement. As a result, the $125,000 note payable has been classified as a current liability as of December 31, 2016 and December 31, 2015 in the accompanying condensed consolidated financial statements. The parties have reached agreement to extend the note payable to March 20, 2018.
  (b) On December 15, 2016, the Company entered into an agreement with a buyer whereby the Company agreed to issue and sell to the Buyer, and the Buyer agreed to purchase from the Company, (i) a non interest bearing Note in the original principal amount of $250,000, (ii) Warrants, and (iii) shares of the Company’s common stock in an amount equal to 30% of the purchase price of the respective tranche divided by the closing price of the Common Stock on the trading day immediately prior to the date of funding of the respective tranche (collectively the “Inducement Shares”). The “Maturity Date” shall be six months from the date of each payment of Consideration. A one-time interest charge of five percent (5%) (“Interest Rate”) is to be applied on the Issuance Date to the original principal amount. In addition, there is a 10% Original Issue Discount that is to be prorated based on the consideration paid by the Buyer.