Quarterly report pursuant to Section 13 or 15(d)

Convertible Debt and Convertible Debt, Related Party

v3.21.2
Convertible Debt and Convertible Debt, Related Party
9 Months Ended
Sep. 30, 2021
Convertible Debt And Convertible Debt Related Party [Abstract]  
Convertible Debt and Convertible Debt, Related Party

Note 5 – Convertible Debt and Convertible Debt, Related Party

 

As of December 31, 2020, the Company’s convertible debt consisted of the following:

 

    December 31, 2020  
    Gross
Principal
Amount
    Debt
Discount
    Convertible
Debt,
Net of
Debt Discount
 
Convertible debt   $ 1,000,000     $
-
    $ 1,000,000  
Convertible debt, related party     1,000,000      
-
      1,000,000  
Senior secured convertible notes     581,818       (3,646 )     578,172  
Total     2,581,818       (3,646 )     2,578,172  
Less: current portion     (2,000,000 )    
-
      (2,000,000 )
Convertible debt, non-current   $ 581,818     $ (3,646 )   $ 578,172  

 

As of September 30, 2021, the Company repaid all convertible debt. See below for details.

 

Convertible Debt and Convertible Debt, Related Party

 

The Company recorded interest expense of $2,959 and $62,424 related to the Convertible Bridge Notes during the three and nine months ended September 30, 2021, respectively, and recorded interest expense of $32,919 and $1,255,497 (including amortization of debt discount of $2,693 and $154,500, respectively) during the three and nine months ended September 30, 2020. The Company repaid in full the Convertible Bridge Notes from the proceeds of the Sale Transaction (see Note 3 – Sale of WPT). There was no balance outstanding on the convertible debt and all related debt discount has been fully amortized as of September 30, 2021.

 

The Company recorded interest expense of $2,958 and $62,425 related to a Convertible Bridge Note owed to a related party (the “Related Party Convertible Debt”) during the three and nine months ended September 30, 2021, respectively, and recorded interest expense of $32,919 and $130,052 (including amortization of debt discount of $2,693 and $11,885, respectively) during the three and nine months ended September 30, 2020. The Company repaid the Related Party Convertible Debt in full the from the proceeds of the Sale Transaction (see Note 3 – Sale of WPT). There was no balance outstanding on the Related Party Convertible Debt and all related debt discount has been fully amortized as of September 30, 2021.

 

Senior Secured Convertible Notes

 

During January 2021, the Company issued 529,383 shares of its common stock, as Monthly Redemption Payments in satisfaction of an aggregate amount of $581,818 of principal and $93,091 of interest payable owed on the Senior Notes as well as $146,958 of non-cash interest accrued on the Senior Notes. Of the 529,383 shares issued, 132,346 shares were issued in connection with accelerated Monthly Redemption Payments in the aggregate amount of $168,727 (representing $145,454 and $23,273 of principal and interest, respectively). The Company recorded additional non-cash interest expense in the amount of $0 and $46,110 in connection with Monthly Redemption Payments during the three and nine months ended September 30, 2021, respectively. As of September 30, 2021, all principal and interest owed in connection with the Senior Notes has been repaid in full.