Quarterly report pursuant to Section 13 or 15(d)

Debt (Tables)

v3.21.2
Debt (Tables)
9 Months Ended
Sep. 30, 2021
Notes Payable [Member]  
Short-term Debt [Line Items]  
Schedule of Notes Payable

Notes Payable

Terms   Note   Note   Note   Notes
                 
Issuance dates of notes   2016   2016   November 4, 2019   August/September 2021
Maturity date   2016   2017   November 3, 2020   August/September 2022
Interest rate   5%   10%   18%   10%
Collateral   Unsecured   Unsecured   Unsecured   Unsecured
Conversion price   N/A   N/A   N/A   N/A
Warrants issued as discount   N/A   N/A   N/A   2,406,250

 

                            Total     In-Default  
                                     
Principal   $ 485,000     $ 27,500     $ 250,000     $ 853,386 *   $ 1,615,886          
                                                 
Balance - December 31, 2019     485,000       27,500       223,672       -       736,172     $ 512,500  
Amortization of debt discount     -       -       26,328       -       26,328          
Repayments     (485,000 )     (27,500 )     -       -       (512,500 )        
Balance - December 31, 2020     -       -       250,000       -       250,000       250,000  
Gross proceeds     -       -       -       853,386       853,386          
Debt discount     -       -       -       (265,268 )**     (265,268 )        
Amortization of debt discount     -       -       -       5,087       5,087          
Repayments     -       -       (250,000 )     -       (250,000 )        
Balance - September 30, 2021   $ -     $ -     $ -     $ 593,205     $ 593,205     $ -  

 

* In the event of default, notes with principal totaling $386,000 are convertible at 75% of the market price based upon the VWAP in preceding 10 days.
** Debt discount on notes totaling $386,000 includes original issue discounts of $36,000 and debt discounts associated with warrants totaling $229,268.
Convertible Notes Payable [Member]  
Short-term Debt [Line Items]  
Schedule of Notes Payable

Convertible Notes Payable – Net

 

Terms   Notes Payable   Notes Payable   Notes Payable
             
Issuance dates of notes   2019 and Prior   February 2020 - December 2020   January 2021 - March 2021
Maturity date   2020   February 2021 - September 2021   May 2021 - March 2022
Interest rate   14%   10% - 14%   5% - 12%
Collateral   Unsecured   Unsecured   Unsecured
Conversion price   A   A   B

 

                      Total     In-Default  
                               
Principal   $ -     $ 2,347,000     $ 2,550,000     $ 4,897,000          
                                         
Balance - December 31, 2019   $ 4,436,684     $ -     $ -     $ 4,436,684     $ -  
Gross proceeds     -       2,347,000       -       2,347,000          
Debt discount     -       (2,347,000 )     -       (2,347,000 )        
Amortization of debt discount     161,217       1,829,219       -       1,990,436          
Repayments - cash     (438,698 )     (130,061 )     -       (568,759 )        
Repayments - common stock     (4,159,203 )     (182,988 )     -       (4,342,191 )        
Balance - December 31, 2020     -       1,516,170       -       1,516,170       -  
Gross proceeds     -       -       2,550,000       2,550,000          
Debt discount     -       -       (2,460,829 )     (2,460,829 )        
Amortization of debt discount     -       517,781       1,458,912       1,976,693          
Repayments - cash     -       (1,132,170 )     (250,000 )     (1,382,170 )        
Repayments - common stock     -       (978,728 )     -       (978,728 )        
Reclassified to receivable     -       76,947 C     -       76,947          
Balance - September 30, 2021   $ -     $ -     $ 1,298,083     $ 1,298,083     $ -  

 

A - Convertible at 65% multiplied by the lowest one (1) day volume weighted average price (“VWAP”) of the Company’s common stock during the ten (10) trading days prior to conversion.

 

B - Convertible at 70% - 75% multiplied by the lowest one (1) day volume weighted average price (“VWAP”) of the Company’s common stock during the ten (10) trading days prior to conversion.

 

C - During 2021, the Company overpaid a note holder by $76,947 when settling the outstanding balance. This overpayment had been recorded as a receivable and was repaid in full in April 2021.
Related Party [Member]  
Short-term Debt [Line Items]  
Schedule of Notes Payable

Notes Payable – Related Parties

    1   2
    Note Payable   Note Payable
Terms   Related Party   Related Party
         
Issuance dates of notes   Various   May 2020/January 2021
Maturity date   June 30, 2022 or January 1, 2023 due on demand   March 2021 and due on demand
Interest rate   10%   15%
Collateral   Unsecured   Unsecured
Conversion price   N/A   N/A

 

                Total     In-Default  
                         
Balance - December 31, 2019     2,205,440       -       2,205,440     $      -  
Gross proceeds     1,136,500       147,500       1,284,000          
Balance - December 31, 2020     3,341,940       147,500       3,489,440       -  
Gross proceeds     3,625,000       63,000       3,688,000          
Repayments     -       (163,000 )     (163,000 )        
Balance - September 30, 2021   $ 6,966,940     $ 47,500     $ 7,014,440     $ -  

 

1 Activity is with the Company’s Chief Executive Officer and Board Director (Kevin Brian Cox). Prior to September 30, 2021, these notes were either due on demand or had a specific due date. Additionally, these advances had interest rates from 6%-15%. On September 30, 2021, all notes and related accrued interest were combined into two (2) new notes. The new notes had due dates of June 30, 2022 or January 1, 2023. All notes bear interest at 10%.

 

2 Activity is with the Company’s President, Chief Operating Officer and Board Director (Anthony Nuzzo). In 2021, the Company received advances of $63,000 in the quarter ended March 31, 2021, which were repaid in the quarter ended March 31, 2021 (this related to the January 2021 note). The remaining outstanding amount of $47,500 is due on demand.
Paycheck Protection Program and Economic Injury Disaster Loan [Member]  
Short-term Debt [Line Items]  
Schedule of Notes Payable

 

    PPP     EIDL     EIDL     PPP  
Terms   SBA     SBA     SBA     SBA  
                         
Issuance dates of SBA loans     April 2020       May 2020       July 2020       March 2021  
Term     18 months       30 Years       30 Years       5 Years  
Maturity date     October 2021       May 2050       July 2050       March 2026  
Interest rate     1%     3.75%     3.75%     1%
Collateral     Unsecured       Unsecured       Unsecured       Unsecured  
Conversion price     N/A       N/A       N/A       N/A  

 

                            Total  
                               
Principal   $ 498,082     $ 150,000     $ 486,600     $ 518,167     $ 1,652,849  
                                         
Balance - December 31, 2019     -       -       -       -       -  
Gross proceeds     498,082       150,000       486,600       -       1,134,682  
Balance - December 31, 2020     498,082       150,000       486,600       -       1,134,682  
Gross proceeds     -       -       -       518,167       518,167  
Deconsolidation of subsidiary (“TW”)     -       -       (150,000 )*     -       (150,000 )
Repayments     -       (1,040 )     (2,385 )     -       (3,425 )
Balance - September 30, 2021   $ 498,082     $ 148,960     $ 334,215     $ 518,167     $ 1,499,424  

 

* In connection with the deconsolidation of TW, $150,000 was assumed by the buyer.