NOTES PAYABLE, NET

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

NOTES PAYABLE, NET

NOTE 6 - NOTES PAYABLE, NET

The following is a summary of notes payable as of March 31, 2019 and December 31, 2018:	March 31, 2019			December 31, 2018
In January 2017, the Company issued a Senior Unsecured Note (“Note”) a face value of $3,000,000, payable two years from issuance, along with an aggregate of 4,500,000 shares of Common Stock, with a fair value of $1,147,500. The Company allocated the proceeds to the common stock based on their relative fair value and recorded a discount of $830,018 to be amortized into interest expense over the two-year term of the note. The Company also paid debt issuance costs consisting of a cash fee of $120,000 and 1,020,000 shares of common stock of the Company with a fair value of $306,000. On April 30, 2018, the Company and the Noteholder agreed to extend the due date of the note until April 30, 2020 for an extension fee of 1,500,000 shares of the Common Stock issued to the Noteholder.  The April 2018 change in terms of the Note payable has been determined to be a debt extinguishment in accordance with ASC 470.   The reported amounts under the debt extinguishment are not significantly different than that of the Company’s reported amounts.  See below	$	2,000,000		$	2,000,000
Installment loan payable related to a vehicle acquisition payable in monthly payments of $539 per month at an interest rate of 10.8% per annum payable for 36 months	16,510			—
Total Principal Outstanding	$	2,016,510		$	2,000,000
Unamortized Deferred Debt	(86,845		)	(106,886		)
Unamortized Deferred Debt Issuance Costs	(32,066		)	(39,466		)
Notes Payable, Net	$	1,897,599		$	1,853,648
Notes Payable, current portion	$	4,926		$	—
Notes Payable, Net of discounts and current portion		1,892,673			1,853,648
	$	1,897,599		$	1,853,648

The following is a roll-forward of the Company’s notes payable and related discounts for the three months ended March 31, 2019:

	Principal Balance:		Debt Issuance Costs:			Debt Discounts:			Total:
Balance at December 31, 2018	$	2,000,000	$	(39,466	)	$	(106,886	)	$	1,853,648
Additions		16,510		—			—			16,510
Amortization		—		7,400			20,041			27,441
Balance at March 31, 2019	$	2,016,510	$	(32,066	)	$	(86,845	)	$	1,897,599

Future maturities of notes payable are as follows as of March 31, 2019:

April 1, 2019 – March 31, 2020	$	4,926
April 1, 2020 – March 31, 2021		2,005,485
April 1, 2021 – March 31, 2022		6,099
	$	2,016,510