| Schedule of Convertible Notes Payable |
Convertible notes
payable are as follows:
| |
|
March 31, 2015 |
|
|
December 31, 2014 |
|
| |
|
|
|
|
|
|
| 6% Convertible notes payable issued in August 2013 |
|
$ |
3,000,000 |
|
|
$ |
3,000,000 |
|
| Discounts on above convertible note |
|
|
(1,333,338 |
) |
|
|
(1,583,333 |
) |
| 15% Convertible notes payable issued in March 2014 |
|
|
- |
|
|
|
500,000 |
|
| Discounts on above convertible note |
|
|
- |
|
|
|
(63,730 |
) |
| 8% Convertible notes payable issued in Nov/Dec 2014 |
|
|
100,000 |
|
|
|
350,000 |
|
| Discounts on above convertible note |
|
|
(58,979 |
) |
|
|
(289,254 |
) |
| 8% Convertible notes payable issued in January 2015 |
|
|
150,000 |
|
|
|
- |
|
| Discounts on above convertible note |
|
|
(127,960 |
) |
|
|
- |
|
| 8% Convertible notes payable issued in January 2015 |
|
|
1,000,000 |
|
|
|
- |
|
| Discounts on above convertible note |
|
|
(803,846 |
) |
|
|
- |
|
| 9% Convertible notes payable issued in March 2015 |
|
|
1,000,000 |
|
|
|
- |
|
| Discounts on above convertible note |
|
|
(719,303 |
) |
|
|
- |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
2,206,574 |
|
|
|
1,913,683 |
|
| Current portion of convertible notes payable |
|
|
(196,154 |
) |
|
|
(436,270 |
) |
| Convertible notes payable, less current portion |
|
$ |
2,010,420 |
|
|
$ |
1,477,413 |
|
|
| Fair Value Measurements, Valuation Assumptions of Embedded Conversion Feature and Warrants |
The contractual
terms of the agreement does not provide for and the Company does not expect to declare dividends in the near future. Key assumptions
used to apply this pricing model as of the date of issuance, December 31, 2014 and March 31, 2015 are presented in the table below:
| |
|
6% Note Issued on |
|
|
15% Note Issued on |
|
|
8% Note Issued on |
|
|
8% Note Issued on |
|
|
8% Notes Issued on |
|
| |
|
August 2, 2013 |
|
|
March 19, 2014 |
|
|
November 19, 2014 |
|
|
December 16, 2014 |
|
|
January 5, 2015 |
|
| Common stock closing price |
|
$ |
4.15 |
|
|
$ |
3.87 |
|
|
$ |
1.70 |
|
|
$ |
1.53 |
|
|
$ |
1.75 |
|
| Conversion per share price |
|
$ |
3.73 |
|
|
$ |
3.29 |
|
|
$ |
1.45 |
|
|
$ |
1.30 |
|
|
$ |
1.33 |
|
| Conversion shares |
|
|
804,764 |
|
|
|
151,999 |
|
|
|
172,672 |
|
|
|
77,061 |
|
|
|
112,402 |
|
| Expected life (in years) |
|
|
3.0 |
|
|
|
1.0 |
|
|
|
3.0 |
|
|
|
3.0 |
|
|
|
3.0 |
|
| Expected volatility |
|
|
110 |
% |
|
|
62 |
% |
|
|
74 |
% |
|
|
74 |
% |
|
|
73 |
% |
| Call option value |
|
$ |
2.82 |
|
|
$ |
1.19 |
|
|
$ |
0.90 |
|
|
$ |
0.81 |
|
|
$ |
0.97 |
|
| Risk-free interest rate |
|
|
0.59 |
% |
|
|
0.15 |
% |
|
|
1.10 |
% |
|
|
1.10 |
% |
|
|
0.90 |
% |
| Dividends |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
December 31, 2014 |
|
|
|
December 31, 2014 |
|
|
|
December 31, 2014 |
|
|
|
December 31, 2014 |
|
|
|
December 31, 2014 |
|
| Common stock closing price |
|
$ |
1.73 |
|
|
$ |
1.73 |
|
|
$ |
1.73 |
|
|
$ |
1.73 |
|
|
|
NA |
|
| Conversion per share price |
|
$ |
1.49 |
|
|
$ |
1.47 |
|
|
$ |
1.26 |
|
|
$ |
1.26 |
|
|
|
NA |
|
| Conversion shares |
|
|
2,008,032 |
|
|
|
340,020 |
|
|
|
199,177 |
|
|
|
77,061 |
|
|
|
NA |
|
| Expected life (in years) |
|
|
1.6 |
|
|
|
0.2 |
|
|
|
2.9 |
|
|
|
3.0 |
|
|
|
NA |
|
| Expected volatility |
|
|
64 |
% |
|
|
66 |
% |
|
|
74 |
% |
|
|
74 |
% |
|
|
NA |
|
| Call option value |
|
$ |
0.64 |
|
|
$ |
0.35 |
|
|
$ |
0.77 |
|
|
$ |
0.78 |
|
|
|
NA |
|
| Risk-free interest rate |
|
|
0.67 |
% |
|
|
0.40 |
% |
|
|
1.10 |
% |
|
|
1.10 |
% |
|
|
NA |
|
| Dividends |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
NA |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
March 31, 2015 |
|
|
|
March 31, 2015 |
|
|
|
March 31, 2015 |
|
|
|
March 31, 2015 |
|
|
|
March 31, 2015 |
|
| Common stock closing price |
|
$ |
2.39 |
|
|
|
NA |
|
|
|
NA |
|
|
$ |
2.39 |
|
|
$ |
2.39 |
|
| Conversion per share price |
|
$ |
2.23 |
|
|
|
NA |
|
|
|
NA |
|
|
$ |
1.96 |
|
|
$ |
1.96 |
|
| Conversion shares |
|
|
1,343,085 |
|
|
|
NA |
|
|
|
NA |
|
|
|
51,151 |
|
|
|
76,726 |
|
| Expected life (in years) |
|
|
1.3 |
|
|
|
NA |
|
|
|
NA |
|
|
|
2.7 |
|
|
|
2.8 |
|
| Expected volatility |
|
|
65 |
% |
|
|
NA |
|
|
|
NA |
|
|
|
65 |
% |
|
|
73 |
% |
| Call option value |
|
$ |
0.77 |
|
|
|
NA |
|
|
|
NA |
|
|
$ |
1.14 |
|
|
$ |
1.24 |
|
| Risk-free interest rate |
|
|
0.64 |
% |
|
|
NA |
|
|
|
NA |
|
|
|
0.99 |
% |
|
|
1.02 |
% |
| Dividends |
|
|
0.00 |
% |
|
|
NA |
|
|
|
NA |
|
|
|
0.00 |
% |
|
|
0.00 |
% |
|