| DEBT |
NOTE 9 – DEBT
The Company entered into a loan agreement evidenced
by a convertible secured promissory note with Advanced Technology Materials, Inc. (“ATMI”) on February 14, 2012. The
amount of the convertible secured promissory note was $225,000. The entire loan and/or unpaid balance of the loan and accrued interest
can be converted into the Company’s common stock at $0.50 per share at any time at the option of the holder. In December
2014, the promissory note and accrued interest was purchased by two shareholders of the Company from ATMI. In January 2015 the
convertible promissory note and accrued interest totaling $257,400 was converted into 514,750 shares of common stock in accordance
with the terms on the original convertible note.
Debt as of September 30, 2015 and December
31, 2014, was comprised of the following:
| |
|
2015 |
|
2014 |
| June 2011 Note - In Default |
|
$ |
68,000 |
|
|
$ |
68,000 |
|
| |
|
|
|
|
|
|
|
|
| Convertible note payable, interest at 8% per annum, $320,000 principal payment due December 31, 2016, remaining unpaid principal and interest due August 20, 2018, convertible into common stock at the option of the lenders at a rate of $1.10 per share |
|
|
1,000,000 |
|
|
|
— |
|
| Debt discount |
|
|
(14,200 |
) |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
| Note payable dated February 2012, interest at 5% per annum, $112,500 is due December 31, 2014, convertible in whole or in part to common stock at $.50 per share. (see Note 11) |
|
|
— |
|
|
|
225,000 |
|
| |
|
|
|
|
|
|
|
|
| Note payable insurance premium financing, interest at 4.25% per annum, payable in 10 installments of $27,927, due November 1, 2015 |
|
|
27,800 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
| Capital lease obligations, secured by certain assets, maturing through March 2019 |
|
|
236,600 |
|
|
|
130,900 |
|
| Total notes payable and capital lease obligations |
|
|
1,318,200 |
|
|
|
423,900 |
|
| Less: current portion |
|
|
(199,400 |
) |
|
|
(363,000 |
) |
| Notes payable and capital lease obligations, long-term, including debt discount |
|
$ |
1,118,800 |
|
|
$ |
60,900 |
|
|