Quarterly report pursuant to Section 13 or 15(d)

Subscription Agreements

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Subscription Agreements
6 Months Ended
Jun. 30, 2015
Long-Term Debt/ Subscription Agreements [Abstract]  
SUBSCRIPTION AGREEMENTS
4. SUBSCRIPTION AGREEMENTS

 

The Company entered into Subscription Agreements with five accredited investors (the “December 2014 Investors”) between November 24, 2014 and December 29, 2014 providing for the sale by the Company to the December 2014 Investors of 14% Unsecured Convertible Promissory Notes in the aggregate amount of $1,242,900 (the "December 2014 Notes"). In addition to the December 2014 Notes, the December 2014 Investors also received common stock purchase warrants (the “December 2014 Warrants”) to acquire 4,439,287 shares of common stock of the Company. The December 2014 Warrants are exercisable for five years at an exercise price of $0.14. The initial closing of $200,000 was on November 24, 2014, the second closing of $700,000 was on December 8, 2014 and the third closing of $343,000 was on December 30, 2014.

 

In March 2015 the note and accrued interests were converted to equity. 

 

In June 2015, the Company issued Promissory Notes with a maturity of two years and an original issue discount of approximately 10%. The Notes may be prepaid at any time on or before 90 days from the date of issue. After the initial 90 day period the Note bears interest charge of 12% applied to the principal sum. Amounts outstanding on these notes were $460,000 as of June 30, 2015.