Quarterly report pursuant to Section 13 or 15(d)

Notes Payable and Long-Term Debt (Tables)

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Notes Payable and Long-Term Debt (Tables)
6 Months Ended
Jun. 30, 2017
Debt Disclosure [Abstract]  
Schedule of Notes Payable and Long-Term Debt

As of June 30, 2017, notes payable and long-term debt consists of:
 
    Note Balance     Debt Discount     Carrying Value  
On October 26, 2011, the Company entered into a note payable in the amount of $362,257, relating to a Unit redemption agreement bearing interest at 6% per annum and is payable in equal monthly installments of $7,003, inclusive of interest, past due   $ 68,973     $ -     $ 68,973  
                         
Convertible Promissory Note - Non-interest bearing; on January 19, 2016, the Company modified the terms of a secured note payable in the original amount of $950,000 and made the $700,000 balance convertible1     300,000       -       300,000  
                         
Note payable to former officer due in four equal annual installments of $25,313 on April 28 of each year; past due in 2016; accruing interest at 6% per annum since April 28, 2016     101,250       -       101,250  
                         
Notes payable to seller of DigitizeIQ, LLC due as noted below2     485,000       -       485,000  
                         
Senior Secured Credit Facility dated February 24, 2016; interest at 18% per annum; interest only for two months then 16 payments of $28,306 monthly3     261,043       -       261,043  
                         
Note payable to Calvary Fund I. LP, formerly Pinz Capital International, LP dated May 25, 2016 with interest at 18%4     115,488       -       115,488  
                         
Convertible note payable to River North Equity LLC dated July 13, 2016 with interest at 10% per annum; due April 13, 2017; convertible into common stock5     27,500       -       27,500  
                         
Convertible promissory notes payable to Salksanna, LLC dated October 7, 2016 and December 21, 2016 with interest at 10% per annum; due March 13, 2018; convertible into common stock6     95,405       51,492       43,913  
                         
Series of convertible promissory notes payable to an individual dated from May 4, 2017 through May 23, 2017 with interest at 10% per annum; due in seven months; convertible into common stock at $0.10 per share     60,000       34,249       25,751  
                         
Working capital notes7     58,494       -       58,494  
      1,573,153       85,741       1,487,412  
Less current portion notes payable and long-term debt     1,547,840       85,741       1,462,099  
Long-term debt   $ 25,313     $ -     $ 25,313  

 

As of December 31, 2016, notes payable and long-term debt consists of:
 
    Note Balance     Debt Discount     Carrying Value  
On October 26, 2011, the Company entered into a note payable in the amount of $362,257, relating to a Unit redemption agreement bearing interest at 6% per annum and is payable in equal monthly installments of $7,003, inclusive of interest, past due   $ 68,973     $ -     $ 68,973  
                         
Convertible Promissory Note - Non-interest bearing; on January 19, 2016, the Company modified the terms of a secured note payable in the original amount of $950,000 and made the $700,000 balance convertible1     590,000       -       590,000  
                         
Note payable to former officer due in four equal annual installments of $25,313 on April 28 of each year; past due in 2016; accruing interest at 6% per annum since April 28, 2016     101,250       -       101,250  
                         
Notes payable to seller of DigitizeIQ, LLC due as noted below2     485,000       -       485,000  
                         
Senior Secured Credit Facility dated February 24, 2016; interest at 18% per annum; interest only for two months then 16 payments of $28,306 monthly3     261,043       -       261,043  
                         
Note payable to Calvary Fund I. LP, formerly Pinz Capital International, LP dated May 25, 2016 with interest at 18%4     130,000       -       130,000  
                         
Convertible note payable to River North Equity LLC dated July 13, 2016 with interest at 10% per annum; due April 13, 2017; convertible into common stock5     27,500       8,774       18,726  
                         
Convertible promissory notes payable to Salksanna, LLC dated October 7, 2016 and December 21, 2016 with interest at 10% per annum; due March 13, 2018; convertible into common stock6     95,405       87,379       8,026  
                         
Working capital notes7     183,757       -       183,757  
      1,942,928       96,153       1,846,775  
Less current portion     1,796,898       8,774       1,788,124  
Long-term debt   $ 146,030     $ 87,379     $ 58,651  

 

Schedule of Estimated Fair Value Assumptions used in Black-Scholes Option Pricing Model

The estimated fair value of the derivative instruments was valued using the Black-Scholes option pricing model, using the following assumptions:

 

Estimated dividends     None  
Expected volatility     207.20% to 238.94 %
Risk free interest rate     2.61% to 2.89 %
Expected term     .01 to 36 months