| Schedule of Convertible Notes Payable |
Convertible notes
payable are as follows:
| |
|
September 30. 2015 |
|
|
December 31, 2014 |
|
| |
|
|
|
|
|
|
| 6% Convertible notes payable issued in November 2013 |
|
$ |
3,000,000 |
|
|
$ |
3,000,000 |
|
| Discounts on above convertible note |
|
|
(833,340 |
) |
|
|
(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 |
|
|
(17,029 |
) |
|
|
(289,254 |
) |
| 8% Convertible notes payable issued in January 2015 |
|
|
150,000 |
|
|
|
- |
|
| Discounts on above convertible note |
|
|
(104,808 |
) |
|
|
- |
|
| 8% Convertible notes payable issued in January 2015 |
|
|
575,000 |
|
|
|
- |
|
| Discounts on above convertible note |
|
|
(359,243 |
) |
|
|
- |
|
| |
|
|
2,510,580 |
|
|
|
1,913,683 |
|
| Current portion of convertible notes payable |
|
|
215,757 |
|
|
|
436,270 |
|
| Convertible notes payable, less current portion |
|
$ |
2,294,823 |
|
|
$ |
1,477,413 |
|
|
| Fair Value Measurements, Valuation Assumptions of Embedded Conversion Feature and Warrants |
. Key assumptions
used to apply this pricing model as of the date of issuance, December 31, 2014 and September 30, 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
|
|
|
8% Notes
Issued on
|
|
| |
|
August 2, 2013 |
|
|
March 19, 2014 |
|
|
November 19, 2014 |
|
|
December 16, 2014 |
|
|
January 5, 2015 |
|
|
January 5, 2015 |
|
| Common stock closing price |
|
$ |
4.15 |
|
|
$ |
3.87 |
|
|
$ |
1.70 |
|
|
$ |
1.53 |
|
|
$ |
1.75 |
|
|
$ |
1.75 |
|
| Conversion per share price |
|
$ |
3.73 |
|
|
$ |
3.29 |
|
|
$ |
1.45 |
|
|
$ |
1.30 |
|
|
$ |
1.33 |
|
|
$ |
1.33 |
|
| Conversion shares |
|
|
804,764 |
|
|
|
151,999 |
|
|
|
172,672 |
|
|
|
77,061 |
|
|
|
112,402 |
|
|
|
749,344 |
|
| Expected life (in years) |
|
|
3.0 |
|
|
|
1.0 |
|
|
|
3.0 |
|
|
|
3.0 |
|
|
|
3.0 |
|
|
|
3.0 |
|
| Expected volatility |
|
|
110 |
% |
|
|
62 |
% |
|
|
74 |
% |
|
|
74 |
% |
|
|
73 |
% |
|
|
73 |
% |
| Call option value |
|
$ |
2.82 |
|
|
$ |
1.19 |
|
|
$ |
0.90 |
|
|
$ |
0.81 |
|
|
$ |
0.97 |
|
|
$ |
0.97 |
|
| Risk-free interest rate |
|
|
0.59 |
% |
|
|
0.15 |
% |
|
|
1.10 |
% |
|
|
1.10 |
% |
|
|
0.90 |
% |
|
|
0.90 |
% |
| Dividends |
|
|
0.00 |
% |
|
|
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 |
|
|
December 31, 2014 |
|
| Common stock closing price |
|
$ |
1.73 |
|
|
$ |
1.73 |
|
|
$ |
1.73 |
|
|
$ |
1.73 |
|
|
|
NA |
|
|
|
NA |
|
| Conversion per share price |
|
$ |
1.49 |
|
|
$ |
1.47 |
|
|
$ |
1.26 |
|
|
$ |
1.26 |
|
|
|
NA |
|
|
|
NA |
|
| Conversion shares |
|
|
2,008,032 |
|
|
|
340,020 |
|
|
|
199,177 |
|
|
|
77,061 |
|
|
|
NA |
|
|
|
NA |
|
| Expected life (in years) |
|
|
1.6 |
|
|
|
0.2 |
|
|
|
2.9 |
|
|
|
3.0 |
|
|
|
NA |
|
|
|
NA |
|
| Expected volatility |
|
|
64 |
% |
|
|
66 |
% |
|
|
74 |
% |
|
|
74 |
% |
|
|
NA |
|
|
|
NA |
|
| Call option value |
|
$ |
0.64 |
|
|
$ |
0.35 |
|
|
$ |
0.77 |
|
|
$ |
0.78 |
|
|
|
NA |
|
|
|
NA |
|
| Risk-free interest rate |
|
|
0.67 |
% |
|
|
0.40 |
% |
|
|
1.10 |
% |
|
|
1.10 |
% |
|
|
NA |
|
|
|
NA |
|
| Dividends |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
NA |
|
|
|
NA |
|
| |
|
September 30, 2015 |
|
|
September 30, 2015 |
|
|
September 30, 2015 |
|
|
September 30, 2015 |
|
|
September 30, 2015 |
|
|
September 30, 2015 |
|
| Common stock closing price |
|
$ |
1.10 |
|
|
|
NA |
|
|
|
NA |
|
|
$ |
1.10 |
|
|
$ |
1.10 |
|
|
$ |
1.10 |
|
| Conversion per share price |
|
$ |
1.16 |
|
|
|
NA |
|
|
|
NA |
|
|
$ |
0.95 |
|
|
$ |
0.95 |
|
|
$ |
0.95 |
|
| Conversion shares |
|
|
2,581,978 |
|
|
|
NA |
|
|
|
NA |
|
|
|
104,730 |
|
|
|
157,095 |
|
|
|
602,199 |
|
| Expected life (in years) |
|
|
0.8 |
|
|
|
NA |
|
|
|
NA |
|
|
|
2.2 |
|
|
|
2.3 |
|
|
|
2.3 |
|
| Expected volatility |
|
|
73 |
% |
|
|
NA |
|
|
|
NA |
|
|
|
77 |
% |
|
|
77 |
% |
|
|
77 |
% |
| Call option value |
|
$ |
0.27 |
|
|
|
NA |
|
|
|
NA |
|
|
$ |
0.53 |
|
|
$ |
0.53 |
|
|
$ |
0.53 |
|
| Risk-free interest rate |
|
|
0.37 |
% |
|
|
NA |
|
|
|
NA |
|
|
|
1.01 |
% |
|
|
1.01 |
% |
|
|
1.01 |
% |
| Dividends |
|
|
0.00 |
% |
|
|
NA |
|
|
|
NA |
|
|
|
0.00 |
% |
|
|
0.00 |
% |
|
|
0.00 |
% |
|