10% Secured Convertible Notes Payable - Stockholders |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| 10% Secured Convertible Notes Payable - Stockholders [Abstract] | |
| 10% SECURED CONVERTIBLE NOTES PAYABLE - STOCKHOLDERS | NOTE 6 – 10% SECURED CONVERTIBLE NOTES PAYABLE - STOCKHOLDERS
On March 6, 2015, the Company, pursuant to a Securities Purchase Agreement (the “Purchase Agreement”), issued $2,000,000 aggregate principal amount of its 10% Secured Convertible Promissory Notes due March 5, 2016 (the “Notes”) to certain stockholders. On May 11, 2015, the Company issued an additional $940,000 of Notes to stockholders. In 2025, an additional $3,305,000 of Notes were issued by the Company to stockholders. During the six months ended June 30, 2026, the Company issued an additional $925,000 of Notes to stockholders. The maturity dates of the Notes have been extended most recently from December 31, 2024 to April 30, 2025, with the consent of the Note holders. An additional extension was provided by the Note holders on April 30, 2025. This extended the maturity date until May 31, 2025, with a provision stipulating that unless previously repaid in full such date shall be automatically extended on a month-to-month basis thereafter unless the Note holder submits notification in writing to the contrary.
The Notes are convertible by the holders, at any time, into shares of the Company’s Series B Preferred Stock at a conversion price of $90.00 per share, subject to adjustment for stock splits, stock dividends and similar transactions with respect to the Series B Preferred Stock only. Each share of Series B Preferred Stock is currently convertible into 100 shares of the Company’s common stock at a current conversion price of $0.90 per share, subject to anti-dilution adjustment as described in the Certificate of Designation of the Series B Preferred Stock. In addition, pursuant to the terms of a Security Agreement entered into on May 11, 2015, as amended, by and among the Company, the Note holders and a collateral agent acting on behalf of the Note holders (the “Security Agreement”), the Notes are secured by a lien against substantially all of the Company’s business assets. Pursuant to the Purchase Agreement, the Company also granted piggyback registration rights to the holders of the Series B Preferred Stock upon a conversion of the Notes.
The Notes are recorded as a current liability as of June 30, 2026 and December 31, 2025 in the amount of $7,066,237 and $6,141,237, respectively. Interest accrued on the Notes was $3,642,522 and $3,306,659 as of June 30, 2026 and December 31, 2025. Interest expense related to these Notes payable was $176,160 and $355,862 for the three and six months ended June 30, 2026 and $84,947 and $160,853 for the three and six months ended June 30, 2025. |