Quarterly report pursuant to Section 13 or 15(d)

Debt Obligations

v3.5.0.2
Debt Obligations
6 Months Ended
Jun. 30, 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.

 

For the three and six months ended June 30, 2016, the Company repaid $0 and $25,000, respectively, of principal related to the 8% Notes.

 

The Company accrued interest expense of $8,295 and $16,163 during the three and six months ended June 30, 2016 and $9,919 and $21,373 during the three and six months ended June 30, 2015, respectively, in connection with its convertible notes.

 

The Company’s debt obligations consist of the following:

 

    June 30, 2016      December 31, 2015  
    Principal     Interest [1]     Total      Principal       Interest [1]     Total  
                                                 
8% Convertible Notes   $ 212,500     $ 237,047     $ 449,547     $ 237,500     $ 220,884     $ 458,384  
12.5% Convertible Notes     -       -       -       50,000       34,613       84,613  
Total   $ 212,500     $ 237,047     $ 449,547     $ 287,500     $ 255,497     $ 542,997  

 

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