Notes Payable

3 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Notes Payable

The following table summarizes our unsecured promissory notes at June 30, 2016 and March 31, 2016.

	June 30, 2016								March 31, 2016
	Principal			Accrued					Principal			Accrued
	Balance			Interest		Total			Balance			Interest			Total
5.75% Note payable to insurance premium financing company (current)	$	105,900		$	-	$	105,900		$	-		$	-		$	-
7.0% Note payable to Progressive Medical Research	$	-		$	-	$	-		$	58,800		$	12,000		$	70,800
less: current portion		-			-		-			(31,600	)		(12,000	)		(43,600	)
7.0% Notes payable - non-current portion	$	-		$	-	$	-		$	27,200		$	-		$	27,200
Total notes payable to unrelated parties	$	105,900		$	-	$	105,900		$	58,800		$	12,000		$	70,800
less: current portion		(105,900	)		-		(105,900	)		(31,600	)		(12,000	)		(43,600	)
Net non-current portion	$	-		$	-	$	-		$	27,200		$	-		$	27,200

Between May 2015 and August 2015, we extinguished the outstanding balances of approximately $17.2 million of indebtedness, including all senior secured promissory notes, all except $85,100 principal of unsecured promissory notes, and a substantial portion of other indebtedness, and certain adjustments thereto, that were either due and payable or would have become due and payable prior to March 31, 2016, by converting all such indebtedness into shares of our Series B Preferred.  Evaluating each note or debt class separately, we determined that the conversion of each of the notes or other debt instruments into Series B Preferred should be accounted for as an extinguishment of debt.  Because the fair value of the Series B Preferred into which the debt instruments were converted in all cases exceeded the carrying value of the debt, we recorded an aggregate loss on extinguishment of debt of $26,700,200, in our fiscal year ended March 31, 2016, of which $25,050,900 was recorded in the quarter ended June 30, 2015, as reflected in the accompanying Consolidated Statement of Operations and Comprehensive Loss for that period.

On January 5, 2016, we paid in full the $33,300 outstanding balance (principal and accrued but unpaid interest) of the promissory note previously issued to University of California at Davis.

On June 13, 2016, we paid in full the $71,600 outstanding balance (principal and accrued but unpaid interest) of the promissory note we issued to Progressive Medical Research in August 2012.

In May 2016, we executed a promissory note in the face amount of $117,500 to finance certain insurance policy premiums.  The note is payable in monthly installments of $12,100, including principal and interest, through March 2017.