DEBT

9 Months Ended

Sep. 30, 2016

ConvertibleNotesAbstract

DEBT

A summary of debt as of September 30, 2016, is as follows:

	Amount
Outstanding, December 31, 2015	$	1,336,819
Borrowings		-
Repayments		(403,778	)
Conversions to Series C Preferred Stock		(500,000	)
Outstanding, March 31, 2016		433,041
Borrowings		36,075
Repayments		-
Outstanding, June 30, 2016		469,116
Borrowings		58,923
Repayments		(300,000	)
Outstanding, September 30, 2016	$	228,039

The Company entered into a line-of-credit agreement with a financial institution on June 30, 2014. The terms of the agreement allow the Company to borrow up to the lesser of $1.5 million or 85% of the sum of eligible accounts receivables. At September 30, 2016, the total outstanding on the line-of-credit approximated $173,000, and the Company did not have any borrowing availability. The line-of-credit bears interest at Prime rate 3.25% as of September 30, 2016 plus 4.50% per annum, as well as a monthly fee of 0.50% on the average amount outstanding on the line, and is secured by the accounts receivable funded against.