|12 Months Ended|
Dec. 31, 2017
|Debt Disclosure [Abstract]|
During an offering that ended on September 30, 2010, IPG issued convertible notes with an interest rate of 8% and an amended maturity date of March 31, 2011 (the “Debt Obligations”). During the years ended December 31, 2017 and 2016, principal of $162,500 and $75,000, respectively, and accrued interest of $52,500 and $0, respectively, was repaid in cash. During the years ended December 31, 2017 and 2016 the Company accrued interest expense of $37,219 and $49,877, respectively, on the 8% Notes. As of December 31, 2017, and 2016, principal of $0 and $162,500, respectively, and accrued interest of $255,481 and $270,761, respectively, remained outstanding. The Company made interest payments of $52,500 during the year ended December 31, 2017. The principal balance at December 31, 2016 was no longer convertible, since the note was past its maturity date. Accrued interest at December 31, 2017 and 2016 is not convertible.
On December 31, 2017, the Company sold a convertible promissory note (the “Convertible Debt”) in the amount of $20,000 to an accredited investor. The note has a 90-day maturity, bears interest at 8% per annum and is convertible into the Company’s common stock at a 10% discount to the price used for the sale of the Company’s common stock in the Company’s next private placement offering This provision resulted in a contingent beneficial conversion feature which will be recognized when the private placement offering commences and the contingency is resolved.
During an offering that ended on October 31, 2011, AWLD issued convertible notes with an interest rate of 12.5% and an amended maturity date of August 29, 2012 (the “12.5% Notes”). 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 first quarter of 2016. As of December 31, 2017 and 2016, there is no principal or interest outstanding related to the 12.5% Notes.
Between January 27, 2017 and February 27, 2017, the Company sold convertible promissory notes to accredited investors for total gross proceeds to the Company of $1,260,000. The notes had a 90-day maturity, paid 8% annual interest and were convertible into the Company’s Series B convertible preferred stock (the “Series B Preferred Stock”) at a conversion price of $10 per share, beginning fifteen days after being notified of the Series B Preferred Stock offering. On March 31, 2017, the $1,260,000 of principal plus $7,324 of accrued interest owed on the convertible promissory notes was converted into 126,739 shares of Series B Preferred Stock (See Note 16 - Stockholders’ (Deficiency) Equity).
The Company’s debt obligations are summarized below:
(1) Accrued interest is included as a component of accrued expenses on the consolidated balance sheets. (See Note 9 – Accrued Expenses)
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://www.xbrl.org/2003/role/presentationRef