Notes Payable | 5. Notes Payable Notes payable consist of the following: December 31, 2017 December 31, 2016 Promissory note issued July 29, 2014 to Ira Gaines. In 2016, the maturity date on the note was extended to December 1, 2017. As of December 31, 2017 the note is in default. The note earns interest at a rate of 18% per annum. $ 100,000 $ 100,000 Promissory notes issued between November 26, 2014 and December 31, 2015, to raise up to $2,000,000 in debt. Lenders earn interest at a rate of 10% per annum, plus a pro-rata share of two percent of the Company’s gross receipts for sales of IRT-103-LDN in perpetuity. Notes will be repaid in 36 monthly installments of principal and interest commencing no later than October 15, 2015. Notes aggregating $286,000 were in default at December 31, 2017, as the Company was unable to pay installments on those notes on their due dates. 286,000 286,000 Promissory notes issued between May 1, 2015 and December 31, 2016, and maturing between June 14, 2015 and December 1, 2017. Lenders on loans aggregating $505,994 earn interest at rates between 2% and 18% per annum. On loans aggregating $200,000, interest is payable in a fixed amount not tied to a specific interest rate. Notes aggregating $705,994 were in default at December 31, 2017, as the Company was unable to repay those notes on their due dates. 705,994 704,494 Promissory notes issued by Cytocom Inc. between April 29, 2015 and December 31, 2015. Lenders earn interest at rates between 5% and 10% per annum. These notes mature on December 31, 2016. At December 31, 2017, the notes were in default. 425,000 425,000 Promissory note issued in December 2015. The lender earns interest at a rate of 10% per month. The note is repayable on March 9, 2016. On April 3, 2017, the Company settled the obligation. - 100,000 Promissory notes issued between May 5, 2016 and June 2, 2016 that mature between October 1, 2016 and January 31, 2017, and include stock conversion features, warrants and original issue debt discounts. The notes were repaid or converted into stock in the quarter ended December 31, 2017. - 554,882 Promissory notes issued to an officer of the Company effective November 3, 2015 and maturing November 3, 2016 for settlement of accrued payroll, bearing interest at 10% per annum and including a stock conversion feature. The Company was unable to repay the note at maturity and the note is in default. 97,737 112,737 Promissory note issued in July 2016. The note was repayable on October 5, 2016 but was extended to December 31, 2016. The note earns interest at 6% per month. The Company was unable to repay the note at maturity and the note is in default. 50,000 50,000 Promissory note for $180,000 was issued in July 2016 with an original issue discount of $30,000. The note is repayable on April 7, 2017. The Company was unable to repay the note at maturity and the note is in default. Under the terms of the note, the principal amount was increased in 2017 to $243,000, and interest accrued at 25% per annum. $161,976 of principal and $20,025 of accrued interest were converted into 7,447,448 shares, of which 5,500,000 shares were issued at year end. The Company has accrued a $243,199 derivative liability for the $81,024 principal balance attributable to the conversion feature contained in this note. 81,024 180,000 Promissory notes issued in August 2016 for $149,854 as a settlement of amounts owed to a law firm. The notes accrue interest at 5% per annum and are payable in 18 equal monthly installments of $8,642. The note was in default on December 31, 2017. 17,284 120,987 Promissory notes issued between July 1, 2016 and December 31, 2016. Lenders earn interest at 2% per annum. The notes mature on December 31, 2017 and are in default. 206,000 256,000 Notes aggregating $1,354,000 issued in the fourth quarter of 2016. The notes accrue interest at 2% per annum and mature between November 1, 2017 and December 31, 2017. As of December 31, 2017the notes are in default. 1,354,000 1,354,000 Notes aggregating $500,000 issued in the first quarter of 2017. The notes accrue interest at 2% per annum and mature between January 12, 2018 and June 30, 2018. 500,000 - Promissory note issued January 25, 2017. The lenders earn interest at 7% per month. The note matures on July 5, 2017 and is in default. 50,000 - Notes aggregating $300,000 issued in the second quarter of 2017. The notes accrue interest at 2% per annum and mature between January 12, 2018 and June 30, 2018. 300,000 - Notes aggregating $191,800 issued in the third quarter of 2017. The notes accrue interest at 2% per annum and mature between June 16, 2018 and December 31, 2018. 191,800 - Promissory note for $425,000 was issued in October 2017 with an original issue discount of $70,000. The note is in default, giving the Holder an option to convert the note to stock. The Company has accrued a $1,426,333 derivative liability for the conversion right. 425,000 - Notes aggregating $108,500 issued in the fourth quarter of 2017. The notes accrue interest at 2% per annum and mature on December 31, 2018. 105,500 - Less: Original issue discounts on notes payable and warrants issued with notes. (75,277 ) (18,681 ) Total $ 4,820,062 $ 4,225,419 As of December 31, 2017, the Company had accrued $703,141 in unpaid interest and default penalties. During the year ended December 31, 2017, 8,147,570 shares with a fair value of $394,562 were issued by the Company for interest expense under promissory notes. As of December 31, 2016, the Company had accrued $399,271 in unpaid interest and $1,502,747 in default penalties. During the year ended December 31, 2016, 4,621,296 shares with a fair value of $403,750 were issued by the Company for interest expense under promissory notes. |