Quarterly report pursuant to Section 13 or 15(d)

Debentures

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Debentures
 3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]  
Debentures

Note 7 – Debentures

 

The carrying amount of all outstanding debentures as of March 31, 2021 (unaudited), and December 31, 2020 is as follows:

 

    March 31, 2021     December 31, 2020  
             
Debentures   $ 12,690,539     $ 12,690,539  
Less current portion     (12,690,539 )     (12,690,539 )
Debentures, net of current portion   $ -     $ -  

 

Payment of all outstanding debentures totalling $12.7 million, including late-payment penalties, at December 31, 2020 was past due by the debentures’ original terms. The terms of the outstanding debentures as of December 31, 2020 are more fully described in Note 9 to the Company’s consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2020. Certain of these debentures were issued with warrants to purchase shares of the Company’s common stock. Outstanding warrants are more fully discussed in Note 11.

 

During the three months ended March 31, 2021 and 2020, the Company accrued interest expense on outstanding debentures of $0.6 million and $1.9 million, respectively.

 

See Note 11 for summarized information related to warrants issued and the activity during the three months ended March 31, 2021.

 

See Notes 3 and 11 for a discussion of the dilutive effect of the outstanding convertible debentures and warrants as of March 31, 2021 and Note 16 for the dilutive effect of outstanding convertible debentures and warrants as of June 2, 2021.