DEBT

6 Months Ended

Jun. 30, 2017

Debt

DEBT

Line-of-Credit Facility

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 June 30, 2017, the total outstanding on the line-of-credit was $271,231 and the Company did not have any availability to borrow. The line-of-credit bears interest at Prime rate (5.42% as of June 30, 2017) plus 4.5% 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 receivables that are funded against.

A summary of the line-of-credit as of June 30, 2017 and December 31, 2016 is as follows:

	Amount
Outstanding, December 31, 2016	$	109,682
Net Borrowings		161,549
Outstanding June 30, 2017	$	271,231

Note Payable

In April 2017, the Company converted approximately $1,050,000 of accounts payable into a secured note payable agreement with Niagara Bottling, LLC. At June 30, 2017, the total principal amount outstanding was approximately $898,000 and calls for monthly payments of principal and interest totaling $25,000 through December 2017 and approximately $52,000 through maturity. The note bears interest at 8% per annum, matures in April 2019 and is secured by the personal guarantee which secures the bottling agreement between True Drinks, Inc. and Niagara Bottling, LLC.

A summary of the note payable as of June 30, 2017 and December 31, 2016 is as follows:

	Amount
Outstanding, December 31, 2016	$	-
Conversion		1,049,564
Repayments		(151,188	)
Outstanding June 30, 2017	$	898,376