Quarterly report pursuant to Section 13 or 15(d)

NOTES PAYABLE AND DEBENTURE

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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:

 

    September 30, 2019     March 31, 2019  
             
Promissory note to Willbros United States Holdings, Inc., interest rate of 5% due July 30, 2019 and 2020, maturing July 30, 2021, secured by the assets of the Company, interest incurred of $13,422 for the three and six-month period ended September 30, 2019, respectively   $ 1,175,000     $  
Equipment note payable to third party, original balance of $566,455, due in monthly installments of $16,952, interest rate of 4.9%, maturing July 25, 2022, secured by the equipment purchased, interest incurred of $4,566 for the three and six-month periods ended September 30, 2019, respectively                 532,873        
Equipment note payable to third party, original balance of $109,140, due in monthly installments of $3,420, interest rate of 8%, maturing December 30, 2021, secured by the equipment purchased, interest incurred of $1,639 for the three and six-month periods ended September 30, 2019, respectively                    84,252        
Less: current maturities     (216,721 )      
Total   $ 1,575,404     $  

 

Debenture

 

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”.