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Related Party Transactions
12 Months Ended
Dec. 31, 2016
Related Party Transactions [Abstract]  
Related Party Transactions
RELATED PARTY TRANSACTIONS
TFG Radiant owns less than 1% of the Company's outstanding common stock as of December 31, 2016.
On August 29, 2016, the Company entered into a note purchase agreement with Tertius Financial Group Pte. Ltd. (“Tertius" or "TFG”) for the private placement of $330,000 of the Company’s original issue discount notes (“Notes”). On August 29, 2016, the Company sold and issued $330,000 principal amount of Notes to Tertius in exchange for $300,000 of gross proceeds.
Tertius is an investment firm located in Singapore. Victor Lee, the Company’s President and CEO, is a managing director and 50% owner of Tertius. As of December 31, 2016, Tertius owned 13% of the Company's outstanding common stock.
The Notes will mature November 29, 2016. The Notes bear interest at a rate of 6% per annum. Principal and interest on the Notes are payable on November 29, 2016. The Notes are unsecured and not convertible into equity shares of the Company.
On December 6, 2016, the Company issued a new $600,000 original issue discount note to Tertius in exchange for (i) $200,000 of gross proceeds and (ii) cancellation of the existing outstanding $330,000 note. The outstanding balance of the note is $602,000 (including accrued and unpaid interest) with a discount of $60,000 as of December 31, 2016.
The new Tertius note (i) will mature on December 31, 2017 and (ii) will bear interest at a rate of 6% per annum. Principal and interest on the new Tertius note is payable at maturity. The new Tertius note is unsecured and is not convertible into equity shares of the Company.