| DEBT |
NOTE 9 – DEBT
In June 2011, we issued an unsecured promissory
note to a third party in the amount of $40,000 (the “June 2011 Note”) bearing interest at a rate of 10% per annum and
a three year warrant to purchase 13,000 shares of our common stock at an exercise price of $1.00 per share. In addition, a second
note payable, to the same third party, in the amount of $25,000 plus $3,000 of accrued interest was also converted into the June
2011 Note, resulting in a new principal balance of $68,000. Principal payments were due beginning November 2011 and the June 2011
Note is in default as of December 31, 2014 and 2013, as no payments have been made to date. We valued the warrant at $170 using
the Black-Scholes model and recorded this amount as a debt discount. The debt discount was fully amortized during 2011.
Debt as of March 31, 2016 and December 31,
2015, was comprised of the following:
| |
|
2016 |
|
2015 |
| June 2011 Note - In Default |
|
$ |
68,000 |
|
|
$ |
68,000 |
|
| |
|
|
|
|
|
|
|
|
| Convertible note payable, interest at 8% per annum, $400,000 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 |
|
|
1,250,000 |
|
|
|
1,250,000 |
|
| Debt discount (see Note 13) |
|
|
(15,400 |
) |
|
|
(16,600 |
) |
| |
|
|
|
|
|
|
|
|
| Note payable dated October 13, 2015, interest at 8% per annum, payable in 24 monthly installments of principal and interest $4,523, due October 1, 2017. Secured by certain assets of SEM and guaranteed by SEER and MV |
|
|
80,500 |
|
|
|
92,300 |
|
| |
|
|
|
|
|
|
|
|
| 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 |
|
|
209,500 |
|
|
|
218,900 |
|
| |
|
|
|
|
|
|
|
|
| Note payable insurance premium financing, interest at 4.25% per annum, payable in 10 installments of $28,417, due November 1, 2016 |
|
|
196,100 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
| Capital lease obligations, secured by certain assets, maturing through March 2019 |
|
|
188,100 |
|
|
|
208,900 |
|
| Total notes payable and capital lease obligations |
|
|
1,976,800 |
|
|
|
1,821,500 |
|
| Less: current portion |
|
|
(856,100 |
) |
|
|
(660,100 |
) |
| Notes payable and capital lease obligations, long-term, including debt discount |
|
$ |
1,120,700 |
|
|
$ |
1,161,400 |
|
|