Quarterly report pursuant to Section 13 or 15(d)

Note Payable - Schedule of Note Payable (Details)

v3.19.1
Note Payable - Schedule of Note Payable (Details) - USD ($)
 3 Months Ended
Mar. 31, 2019
Dec. 31, 2018
Notes payable - related parties, net $ 1,235,000 $ 1,177,000
Notes Payable Related Parties [Member]    
Notes payable - related parties, net 363,000
Debt discount (8,000)
Total notes payable, net of debt discount $ 355,000
Unsecured Promissory Note 1 (A) [Member]    
Issuance Date [1] Mar. 22, 2019  
Maturity Date [1] Apr. 10, 2019  
Interest Rate [1] 5.00%  
Original Borrowing [1] $ 310,000  
Notes payable - related parties, net [1] $ 310,000  
Unsecured Promissory Note 2 (B) [Member]    
Issuance Date [2] Mar. 29, 2019  
Maturity Date [2] Jul. 10, 2019  
Interest Rate [2] 5.00%  
Original Borrowing [2] $ 53,000  
Notes payable - related parties, net [2] $ 53,000  
[1] On March 22, 2019, we issued an unsecured promissory note to an unaffiliated third-party in the aggregate principal amount of $310,000, in exchange for net proceeds of $300,000, representing an Original Issue Discount of $10,000, which is included in the original principal amount. The note is unsecured and bears interest on the principal amount at a rate of 5% per annum. The note is due on demand at any time after April 10, 2019. As a result of the issuance of the note, the Company incurred aggregate costs of $10,000 related to the note’s original issue discount. The Company recorded these costs as a note discount and is being amortized over the term of the note. As of March 31, 2019, the outstanding balance of the note amounted to $310,000.
[2] On October 30, 2018, the Company issued two unsecured convertible notes to one current investor and one otherwise unaffiliated third-party in the aggregate principal amount of $400,000. The notes bore interest at a rate of 5% per annum and matured on April 29, 2019. Upon the Company's consummation of its underwritten public offering of the Company's units, all, and not less than all, of (i) the outstanding principal amount and (ii) the accrued interest thereunder were converted into shares of the Company's Common Stock. The per-share conversion price equaled seventy-five percent (75%) of the effective offering price of the Common Stock in the Company's recent underwritten public offering. The Company determined that, because the conversion price was unknown, that the Company could not determine if it had enough authorized shares to fulfill the conversion obligation. As such, pursuant to current accounting guidelines, the Company determined that the conversion feature of the notes created a derivative with a fair value of $302,000 at the date of issuance and was accounted as a debt discount and is being amortized over the term of the notes payable. As of March 31, 2019, the outstanding balance of the note amounted to $400,000 and unamortized debt discount was $48,000. The note was subsequently converted into shares of restricted Common Stock in April 2019.