Notes Payable and Stock Warrants

3 Months Ended

Mar. 31, 2020

Payables and Accruals [Abstract]

Notes Payable and Stock Warrants

Notes Payable and Stock Warrants

The notes payable balance consists of the following:

Notes payable principal balance	$	3,000,000
Deferred issuance costs	(254,247		)
Discount	(288,504		)
Total notes payable, net at inception on February 23, 2018	2,457,249
Proceeds from issuance of long-term debt	1,000,000
Revaluation of long-term debt	(447,008		)
Accretion of discount	202,195
Deferred issuance costs	(87,609		)
Total notes payable, net at December 31, 2018	$	3,124,827
Repayment of long-term debt	(489,321		)
Proceeds from issuance of long-term debt	1,000,000
Accretion of discount	273,521
Deferred issuance costs	(55,393		)
Total notes payable, net at December 31, 2019	$	3,853,634
Accretion of discount	163,686
Total notes payable, net at March 31, 2020	$	4,017,320

The $4 million senior secured debt bears interest at prime plus 0.75% and matures on June 30, 2021. The $1 million term loan bears interest at 15% and matures on September 27, 2020. As of March 31, 2020, the Company was in compliance with the financial covenants contained in the Amended and Restated Term Loan Credit Agreement.