NOTES PAYABLE AND DEBENTURE
|6 Months Ended|
Sep. 30, 2019
|Debt Disclosure [Abstract]|
|NOTES PAYABLE AND DEBENTURE||
NOTE 6 – NOTES PAYABLE AND DEBENTURE
Notes payable or debenture outstanding as of September 30, 2019 or March 31, 2019 are comprised of:
On October 31, 2018, an accredited institutional investor, Discover Growth Fund (“Discover”) converted the entire $495,000 remaining balance of principal owed under the terms of a convertible debenture, into an aggregate of 642 shares of common stock, including 5 shares of common stock issuable upon conversion of the principal amount thereof (at a conversion price of $101,562.50 per share), and 637 shares in connection with conversion premiums due thereon (at an initial conversion price, as calculated as provided in such debenture, of $1,912.50 per share). A total of 80 of such shares were issued to Discover in connection with the initial conversion and the remaining shares were held in abeyance subject to Discover’s 9.99% ownership limitation, to be issued from time to time, at the request of Discover. Subsequent to the October 31, 2018 conversion date, Discover was due an additional 38,116 shares of common stock in connection with true ups associated with the original issuance, as a result of the conversion price of the conversion premiums falling to $31.25 per share pursuant to the terms of the convertible debenture. Through September 30, 2019, all but 276 of the shares had been issued, which shares were held in abeyance subject to Discover’s 9.99% ownership limitation, to be issued from time to time, at the request of Discover.
Loan Agreement with IBC
The Company recognized approximately $460,000 in accrued interest as of September 30, 2018 related to its note with IBC Bank which was assumed by certain third parties on September 26, 2018, as discussed above under “NOTE 2 – Liquidity and Going Concern Considerations”.
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef