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Convertible Notes Payable
9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Convertible Notes Payable

4. Convertible Notes Payable

 

On March 23, 2017, the Company entered into an exclusive Definitive Financing Commitment Term Sheet with a group of the Company’s stockholders (the “PRH Group”), which was amended and restated effective as of March 19, 2017 (the “Term Sheet”) that set forth the terms on which the PRH Group would use their best efforts to arrange for a financing of a minimum of $10,000,000 and maximum of $20,000,000 (the “2017 Financing”).

 

As of September 30, 2019, the Company had received aggregate loans of $19,192,000 in connection with the 2017 Financing.

 

As of September 30, 2019, and through the date of filing, the Series D Preferred Stock had not been designated by the Company’s Board of Directors (the “Board”). As a result, the Company did not analyze the loan for a potential beneficial conversion feature as the definition of a firm commitment has not been met since the PRH Notes were not convertible as of their respective dates of issuance or as of September 30, 2019.

 

Convertible Notes Payable – Related Parties

 

During the nine months ended September 30, 2019, the Company entered into additional related party PRH Notes in the aggregate principal amount of $25,000.

 

As of September 30, 2019, the Company had borrowed $6,895,000 of related party PRH Notes that were outstanding.

 

Convertible Notes Payable – Non-Related Parties

 

During the nine months ended September 30, 2019, the Company entered into additional non-related party PRH Notes in the aggregate principal amount of $5,235,000.

 

As of September 30, 2019, the Company had borrowed $12,297,000 of non-related party PRH Notes that were outstanding.