Quarterly report pursuant to Section 13 or 15(d)

Debt Obligations

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Debt Obligations
 3 Months Ended
Mar. 31, 2016
Debt Disclosure [Abstract]  
Debt Obligations

9. DEBT OBLIGATIONS

 

On January 1, 2016, principal and interest of $50,000 and $25,433, respectively, related to the 12.5% Notes were exchanged for 37,700 shares of the Company’s common stock at $2.00 per share, in connection with a one-time offer that was not pursuant to the original terms of the note. An additional $9,180 of accrued interest related to the 12.5% Notes was derecognized during the period.

 

On March 22, 2016, the Company repaid $25,000 principal related to the 8% Notes.

 

The Company’s debt obligations consist of the following:

 

    March 31, 2016   December 31, 2015  
    Principal     Interest [1]     Total     Principal     Interest [1]     Total  
8% Notes   $ 212,500     $ 228,752     $ 441,252     $ 237,500     $ 220,884     $ 458,384  
12.5% Notes     -       -       -       50,000       34,613       84,613  
Total   $ 212,500     $ 228,752     $ 441,252     $ 287,500     $ 255,497     $ 542,997  

  

  [1] Accrued interest is included as a component of accrued expenses on the condensed consolidated balance sheets.

 

During the three months ended March 31, 2016 and 2015, the Company accrued interest expense of $7,868 and $11,454, respectively, in connection with its convertible notes.