| Schedule of debt |
Debt
as of December 31, 2018 and 2017 was comprised of the following:
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2018 |
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2017 |
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| SHORT TERM NOTES |
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| Secured short term note payable dated September 13, 2017 with principal and interest due 60 days from issuance. The note requires a one-time fee in the amount of $15,000 to compensate for the first two weeks of the term and each week thereafter (weeks 3-8) a fee of $1,500 shall be due and owing accruing on the first day of the week. The total one time fee paid was $24,000. A fee of 100,000 shares of restricted common stock shall be issued as a penalty for each month or prorated for any two-week portion of any month the note is outstanding past the original maturity date for months 3 through 6, and a fee of 200,000 shares of restricted common stock shall be issued to lender for each month or prorated for each two-week portion of any month the note is outstanding past the original maturity date beginning in month 7 until paid in full. The note is secured by the future sale of CoronaLux units and a personal guarantee of an officer of the Company. The penalty period for shares to be issued has been reached and for the year ended December 31, 2018, the Company recorded 2,300,000 shares of its common stock as issuable under the terms of this agreement. The shares were valued at $667,800 recorded as interest expense. Additional shares will be issued by the Company under the terms of the agreement. This note was converted to minority investment in new subsidiary in February 2019 (see Note 23). |
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300,000 |
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300,000 |
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| Secured short term note payable dated October 13, 2017 with principal and interest due 60 days from issuance. The note requires a one-time fee in the amount of $4,000 to compensate for the first two weeks of the term and each week thereafter (weeks 3-8) a fee of $400 shall be due and owing accruing on the first day of the week. The total one time fee paid was $6,400. A fee of 40,000 shares of restricted common stock shall be issued as a penalty for each month or prorated for any two-week portion of any month the note is outstanding past the original maturity date for months 3 through 6, and a fee of 80,000 shares of restricted common stock shall be issued to lender for each month or prorated for each two-week portion of any month the note is outstanding past the original maturity date beginning in month 7 until paid in full. The note is secured by the future sale of CoronaLux units and a personal guarantee of an officer of the Company. The penalty period for shares to be issued has been reached for the years ended December 31, 2018 and 2017, however, the debt holder agreed to a reduction and a fixed amount of penalty shares in 2018, and the Company recorded 310,000 shares and 40,000 shares of its common stock, respectively, as issuable under the terms of this agreement. The shares were valued at $137,500 and $30,000 for the years ended December 31, 2018 and 2017, respectively, and were recorded as interest expense in the applicable period. No additional shares will be issued by the Company. The reduction of penalty shares was accounted for as debt extinguishment and a gain was recorded in the period. |
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100,000 |
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100,000 |
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| Secured short term note payable dated November 6, 2017 with principal and interest due 60 days from issuance. The note requires a one-time fee in the amount of $5,000 to compensate for the first two weeks of the term and each week thereafter (weeks 3-8) a fee of $400 shall be due and owing accruing on the first day of the week. The total one time fee paid was $7,400. A fee of 50,000 shares of restricted common stock shall be issued as a penalty for each month or prorated for any two-week portion of any month the note is outstanding past the original maturity date for months 3 through 6, and a fee of 100,000 shares of restricted common stock shall be issued to lender for each month or prorated for each two-week portion of any month the note is outstanding past the original maturity date beginning in month 7 until paid in full. The note is secured by the future sale of CoronaLux units and a personal guarantee of an officer of the Company. The penalty period for shares to be issued had not been reached as of December 31, 2017 but was reached as of December 31, 2018, however, the debt holder agreed to a reduced and fixed amount of penalty shares during 2018. During the year ended December 31, 2018, the Company recorded 350,000 shares of its common stock as issuable under the terms of this agreement. The shares were valued at $153,900 recorded as interest expense. No additional shares will be issued by the Company. The reduction of penalty shares was accounted for as debt extinguishment and a gain was recorded in the period. |
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125,000 |
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125,000 |
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Note payable dated November 20, 2017, interest at 30% per annum, principal and accrued interest due on
or before February 28, 2018. Unpaid interest at December 31, 2018 is approximately $37,500. The note is unsecured. During 2018,
a verbal agreement was made to allow month-to-month extension of the due date as long as interest payments were made monthly. The
Company made interest payments totaling $64,100 of which $37,726 of interest and principal reduction of $1,900 was paid by the
issuance of 140,000 shares of common stock during 2018 and the note holder has continued to extend the due date.
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298,100 |
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300,000 |
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| Secured short term note payable dated January 26, 2018 with principal and interest due 60 days from issuance.
The note required a one-time fee in the amount of $12,500 to compensate for the first two weeks of the term and each week thereafter
(weeks 3-8) a fee of $1,250 accrued on the first day of the week. The total one time fee paid was $17,500. A fee of 100,000 shares
of restricted common stock accrued as a penalty for each month or prorated for any two-week portion of any month the note was outstanding
past the original maturity date for months 3 through 6, and a fee of 200,000 shares of restricted common stock accrued to the lender
for each month or prorated for each two-week portion of any month the note was outstanding past the original maturity date beginning
in month 7 until paid in full. The note was secured by the future sale of CoronaLux™ units and a personal guarantee of an
officer of the Company. This note was paid in full during September 2018 and 700,000 of penalty shares were issued, valued at $200,000
recorded as interest.
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— |
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— |
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| Note payable dated February 27, 2018 due on or before May 31, 2018 requiring a one-time fee in the amount
of $25,000 to be paid as interest along with the principal on the due date. Because the note and interest were not paid on or before
June 1, 2018, a fee of $5,000 accrued on the first day of each month commencing June 1, 2018. The note was secured by all of the
proceeds from the sale of SEM’s BioActive Media paid to or received by SEM or MV. This note principal was paid in full in
September 2018. Unpaid interest at December 31, 2018 is approximately $40,000.
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| Total short term notes |
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823,100 |
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825,000 |
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| CONVERTIBLE NOTES |
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| Convertible notes payable, interest at 8% per annum, unpaid principal and interest maturing 3 years from note date between August 2018 and October 2019, convertible into common stock at the option of the lenders at a rate of $0.70 per share; one convertible note for $250,000 has a personal guarantee of an officer of the Company. The notes that matured in August 2018, were subsequently extended by one year to August 2019, all other terms remained the same. The note that matured November 2018 was subsequently extended to May 2019 and the interest rate increased to 13% per annum. |
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1,605,000 |
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1,605,000 |
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| Debt discount |
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(1,400 |
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(7,200 |
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| Total convertible notes |
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1,603,600 |
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1,597,800 |
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| Less: current portion |
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(1,603,600 |
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(1,250,000 |
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| Long term convertible notes, including debt discount |
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$ |
— |
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$ |
347,800 |
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| LONG TERM NOTES AND CAPITAL LEASE OBLIGATIONS |
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| Note payable dated July 13, 2018, interest at 20% per annum, payable July 13, 2021. No monthly payments are due for the first six months, commencing in month seven, principal and accrued interest will be amortized and payable over the remaining 30 months. The note is secured by all assets of SEM and personally guaranteed by an officer of the Company. A fee of 200,000 shares of restricted common stock was issuable at the time of funding. During the year ended December 31, 2018, the Company recorded 200,000 shares of its common stock as issuable under the terms of this agreement. The shares were valued at $44,000 recorded as debt discount. Unpaid interest at December 31, 2018 was approximately $46,900. |
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500,000 |
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| Debt discount |
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(37,900 |
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— |
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| Note payable dated October 13, 2015, interest at 8% per annum, payable in 60 monthly installments of principal and interest $4,562, due October 1, 2020. Secured by real estate and other assets of SEM and guaranteed by SEER and MV. |
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92,000 |
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137,900 |
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Capital lease obligations, secured by certain assets, maturing through Nov 2020
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57,900 |
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109,600 |
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| Total long term notes and capital lease obligations |
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612,000 |
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247,500 |
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| Less: current portion |
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(71,200 |
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(91,300 |
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| Long term notes and capital lease obligations, long-term, including debt discount |
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$ |
540,800 |
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$ |
156,200 |
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