Note 8 - Convertible Notes Payable |
The Company has the following convertible notes payable outstanding as of March 31, 2020 and December 31, 2019:
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| March 31,
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| December 31,
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| 2020
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| 2019
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|
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Secured convertible promissory notes which mature upon the retirement of the New AC Midwest Secured Debt (see Note 9), bear interest at 10% per annum, are convertible into shares of common stock at $0.50 per share, and are secured by the assets of the Company.
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| $ | 990,000 |
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| $ | 990,000 |
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Unsecured convertible promissory notes which mature beginning on June 15, 2023 through October 31, 2023, bear interest at 12% per annum, and are convertible into shares of common stock at $0.50 per share.
|
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| 860,000 |
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|
| 860,000 |
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|
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Unsecured convertible promissory notes which mature beginning on June 18, 2024 through October 23, 2024, bear interest at 12% per annum, and are convertible into shares of common stock at $0.50 per share.
|
|
| 2,600,000 |
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|
| 2,600,000 |
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|
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Total convertible notes payable before discount
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|
| 4,450,000 |
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|
| 4,450,000 |
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Less discounts and debt issuance costs
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|
| (480,358 | ) |
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| (508,863 | ) |
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Total convertible notes payable
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|
| 3,969,642 |
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|
| 3,941,137 |
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|
|
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|
|
|
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Less current portion
|
|
| - |
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|
| (990,000 | ) |
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|
|
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Convertible notes payable, net of current portion
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| $ | 3,969,642 |
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| $ | 2,951,137 |
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As of March 31, 2020, remaining scheduled principal payments due on convertible notes payable are as follows:
Twelve months ended March 31,
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|
|
|
2021
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| $ | - |
|
2022
|
|
| - |
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2023
|
|
| 990,000 |
|
2024
|
|
| 860,000 |
|
2025
|
|
| 2,600,000 |
|
|
| $ | 4,450,000 |
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As of March 31, 2020, the remaining future amortization of discounts are as follows:
Twelve months ended March 31,
|
| Discounts
|
|
2021
|
| $ | 114,334 |
|
2022
|
|
| 114,334 |
|
2023
|
|
| 114,334 |
|
2024
|
|
| 101,604 |
|
2025
|
|
| 35,752 |
|
|
| $ | 480,358 |
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