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Notes Payable
9 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]  
Notes Payable

Note 9 – Notes Payable

 

Note Payable to Amazon

 

On June 22, 2018, ICTV signed a formal 12-month loan agreement with Amazon Lending. The loan was given in the amount of $145,000 and carries an annual interest rate of 9.69%. For both the three and nine months ended September 30, 2018, interest expense was approximately $3,000. The loan is paid in twelve equal payments of principal and interest of approximately $13,000. These payments will be automatically deducted from any sales that ICTV generates from Amazon.com. If the sales generated do not sufficiently cover the amount of the monthly payment due, Amazon.com is authorized to charge the Company’s credit card on file. There is no early payoff fee for this loan agreement. In the event of a default by the Company, Amazon Lending has a second lien on any and all assets that are at Amazon warehousing facilities, subordinate to the LeoGroup Private Investment Access, LLC Note (see Note 8). The current balance of the loan is approximately $135,000 as of September 30, 2018.

  

Note Payable to related party

 

On July 6, 2018, the Company issued a promissory note to Stephen Jarvis, a member of the Board of Directors, for a 60-day interest free loan of $100,000 from Mr. Jarvis. This loan is to be repaid to the lender within 60 days of receipt. If the loan is not paid within 30 days of the due date, it will be considered in default and the note will bear an 18% interest rate until paid. Effective September 4, 2018, the loan was modified and extended all terms and conditions to be due 180 days from issuance.

 

Note Payable to AOR at fair value

 

On September 20, 2018, AOR Direct, LLC , a media vendor, and the Company entered into an agreement to convert approximately $299,000 of outstanding payables into a loan with a partial convertible feature. The loan carries a 16% interest rate per annum. The loan is payable in eighteen monthly installments of approximately $19,000, due on the last day of each month, beginning on October 31, 2018. The loan carries an option to prepay $200,000 on or before December 31, 2018. If the Company makes this $200,000 prepayment, the Lender, AOR Direct, LLC, will issue $50,000 of debt forgiveness after which the Lender will allow the Company to convert the remaining, which would approximate $49,000 of debt to common stock, at the closing price of the stock on the day of the signing of the agreement which was $0.08. We have elected to account for the loan using the fair value method which requires the Company to record changes in the fair value as a component of other income and expenses, as outlined in Note 4 Fair Value Measurements. The fair value of the note was estimated at face value of approximately $299,000.