Promissory Note Payable
|9 Months Ended|
Sep. 30, 2019
|Debt Disclosure [Abstract]|
|PROMISSORY NOTE PAYABLE||
NOTE 8 - PROMISSORY NOTE PAYABLE
On August 30, 2018, the Company executed an unsecured promissory note (the "Note") in the principal amount of $750 in favor of Joseph Mannello, the Company's chief executive officer (the "Lender"). Pursuant to the Note, on August 30, 2018, the Lender advanced $500 of funds to the Company. On September 26, 2018, the Lender advanced an additional $250 of funds to the Company. The Note accrues interest at a rate of 5% per annum and all payments of principal, interest and other amounts under the Note were payable on August 31, 2019 or earlier under certain circumstances. The Company and Mr. Mannello agreed to extend the maturity date to March 1, 2020. (See Note 16)
The Company may prepay, in whole or in part, at any time, the principal, interest and other amounts owing under the Note, without penalty. On November 13, 2018, the Company amended and restated the Note to increase the maximum amount that may be drawn down under the Note from $750 to $1,000. The Company drew down an additional $250 under the Note in December 2018. As of December 31, 2018, the balance of the Note was $1,000 and the Company accrued $15 of interest expense. In March 2019, $250 of the Note was converted into 171,233 shares as part of a private placement (see Note 1). The proceeds of the Note will be used by the Company for general working capital purposes. As of September 30, 2019, the balance of the Note was $750 and $44 of accrued interest was recorded.
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