NOTE PURCHASE AGREEMENTS
|9 Months Ended|
Sep. 30, 2018
|Note Purchase Agreements|
|NOTE PURCHASE AGREEMENTS||
On March 22, 2018, the Company entered into two note purchase agreements under which the Company issued two convertible promissory notes with a total principal amount of $100,000. The Notes bear interest at a rate of 5% per annum and will mature on February 1, 2023.
If a qualified financing from which at least $5 million of gross proceeds are raised occurs prior to the maturity date, then the outstanding principal balance of the notes, together with all accrued and unpaid interest thereon, shall be automatically converted into a number of shares of the Company’s common stock at $0.05 per Share. The Notes offers registration rights wherein the Company agrees that within 45 days of a Qualified Offering, prior to the Maturity Date, the Company shall file a registration statement with the SEC registering for resale the shares of Company’s common stock into which the Notes are convertible.
During the three and nine months ended September 30, 2018, the Company accrued $1,260 and $2,657, respectively, as interest expenses on the above convertible notes.