NOTE 5: DEBT
|12 Months Ended|
Dec. 31, 2018
|Debt Disclosure [Abstract]|
|Debt Disclosure [Text Block]||
NOTE 5: DEBT
During August 2018, the Company borrowed an aggregate of $160,000, net of an original issue discount of $10,000, under a convertible note payable. The Company recognized $3,644 in amortization of related debt discount. The convertible note payable bears interest at 10% per annum, matures on August 20, 2019 and is convertible after 180 days, or February 16, 2019, at a 65% discount of the quoted market price of the Company’s common stock. This note was repaid in full in February 2019.
During October 2018, the Company borrowed $345,000, net of original debt discount of $45,000 under a note payable. The note payable bears interest at 7% per annum, is due January 8, 2019 and was unsecured. As of December 31, 2018, the balance on the note payable was $345,000 and the Company recognized $36,196 in amortization of the debt discount, leaving a balance of $8,804 as of December 31, 2018.
Outstanding notes payable and convertible notes payable to third parties consisted of the following as of December 31, 2018 and 2017:
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