| DEBT |
NOTE
9 – DEBT
Debt
as of September 30, 2017 and December 31, 2016, was comprised of the following:
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2017 |
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2016 |
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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. |
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1,605,000 |
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1,605,000 |
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| Debt
discount on convertible notes |
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(9,200 |
) |
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(14,900 |
) |
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| Secured
short term note payable dated October 24, 2016 with principal and interest due 60 days from issuance. The note
requires a one-time fee in the amount of $10,000 to compensate for the first two weeks of the term and each week thereafter
(weeks 3-8) a fee of $1,000 shall be due and owing accruing on the first day of the week. 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 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 beginning in month 7 until paid
in full. The note is secured by specific customer accounts receivables and a personal guarantee of an officer of the Company. This
note was paid in full in April 2017. The penalty period for shares to be issued was reached and the Company issued
350,000 shares of its common stock under the terms of this agreement. The shares were valued at $245,000 recorded
as interest expense. |
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— |
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200,000 |
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| Secured
short term note payable dated December 1, 2016 with principal and interest due 60 days from issuance. The note
requires a one-time fee in the amount of $10,000 to compensate for the first two weeks of the term and each week thereafter
(weeks 3-8) a fee of $1,000 shall be due and owing accruing on the first day of the week. 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 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 beginning in month 7 until paid
in full. The note is secured by specific customer accounts receivables and a personal guarantee of an officer of the Company.
This note was paid in full in August 2017. The penalty period for shares to be issued was reached and the Company
issued 800,000 shares of its common stock under the terms of this agreement. The shares were valued at $531,000
recorded as interest expense. |
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— |
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200,000 |
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| Secured
short term note payable dated January 23, 2017 with principal and interest due 60 days from issuance. The note
requires a one-time fee in the amount of $10,000 to compensate for the first two weeks of the term and each week thereafter
(weeks 3-8) a fee of $1,000 shall be due and owing accruing on the first day of the week. 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 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 beginning in month 7 until paid
in full. The note is secured by specific customer accounts receivables and a personal guarantee of an officer of the Company.
This note was paid in full in August 2017. The penalty period for shares to be issued was reached and the Company issued 150,000
shares of its common stock under revised terms of the agreement. The shares were valued at $105,000 recorded as
interest expense. No additional shares will be issued by the Company. |
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— |
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— |
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| Secured
short term note payable dated March 30, 2017 with principal and interest due 60 days from issuance. The note requires
a one-time fee in the amount of $10,000 to compensate for the first two weeks of the term and each week thereafter (weeks
3-8) a fee of $1,000 shall be due and owing accruing on the first day of the week. 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
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 beginning in month 7 until paid in full. The note
is secured by specific customer accounts receivables and a personal guarantee of an officer of the Company. This note was
paid in full in August 2017. The penalty period for shares to be issued was reached and the Company recorded 200,000 shares
of its common stock under the terms of this agreement. The shares were valued at $128,000 recorded as interest
expense. Additional shares will be issued by the Company under the terms of the agreement. |
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— |
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— |
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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. 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 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 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. |
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300,000 |
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— |
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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. This note was
paid in full in October 2017. |
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4,500 |
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43,600 |
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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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148,700 |
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180,000 |
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| Note
payable insurance premium financing, interest at 4.25% per annum, payable in 10 installments of $44,706, due November 1, 2017 |
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42,000 |
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— |
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Capital
lease obligations, secured by certain assets, maturing through March 2019
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49,200 |
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109,600 |
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| Total
notes payable and capital lease obligations |
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2,140,200 |
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2,323,300 |
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| Less: current
portion |
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(425,000 |
) |
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(571,800 |
) |
| Notes
payable and capital lease obligations, long-term, including debt discount |
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$ |
1,715,200 |
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$ |
1,751,500 |
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