Notes Payable and Long-Term Debt
|6 Months Ended|
Jun. 30, 2020
|Debt Disclosure [Abstract]|
|Notes Payable and Long-Term Debt||
As of June 30, 2020 and December 31, 2019, notes payable and long-term debt consists of:
In January 2020, the Company and the sellers settled the outstanding promissory notes and a gain on settlement for the outstanding principal balance $485,000 and related accrued interest of $97,806, was recorded on the condensed consolidated statements of operations.
2 Convertible note payable to River North Equity, LLC (“RNE”) - The Company evaluated the embedded conversion for derivative treatment and recorded an initial derivative liability and debt discount of $23,190. The debt discount is fully amortized. In February 2020, the Company and RNE settled the outstanding debt.
3 Promissory note – The Company evaluated the 100,000 restricted shares of the Company’s Common Stock granted with the note and recorded a debt discount of $31,200. The debt discount is amortized over the earlier of (i) the term of the debt or (ii) conversion of the debt, using the effective interest method. The amortization of debt discount is included as a component of interest expense in the consolidated statements of operations. There was unamortized debt discount of $10,770 and $26,328 as of June 30, 2020 and December 31, 2019, respectively. During the six months ended June 30, 2020, the Company recorded amortization of debt discount totaling $15,558.
The entire disclosure for long-term debt.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef