9.       CONVERTIBLE DEBT OBLIGATIONS

During an offering that ended on September 30, 2010, the Company issued convertible notes with an interest rate of 8% and an amended maturity date of March 31, 2011 (the “2010 Debt Obligations”). During the three months ended March 31, 2018 and 2017, the Company incurred interest expense of $9,153 and $8,849 on the 2010 Debt Obligations. As of December 31, 2017, the entire principal balance owed on the 2010 Debt Obligations has been repaid, however, accrued interest of $264,635 and $255,481 remained outstanding as of March 31, 2018, and December 31, 2017, respectively. Accrued interest on the 2010 Debt Obligations is not convertible.

On December 31, 2017, the Company sold a convertible promissory note in the amount of $20,000 to an accredited investor. From February 2, 2018 through March 22, 2018, the Company sold additional convertible promissory notes in the aggregate principal amount of $1,219,704 (together, the “Convertible Notes”). The Convertible Notes mature 90 days from the date of issuance, bear interest at 8% per annum and are 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. The terms of the conversion option resulted in a contingent beneficial conversion feature which will be recognized when the private placement offering commences and the contingency is resolved. The Company incurred interest expense of $4,225 on this loan during the three months ended March 31, 2018.

The Company’s debt obligations are summarized below: