|9 Months Ended|
Sep. 30, 2021
|Debt Disclosure [Abstract]|
Note 7 – Debentures
The carrying amount of all outstanding debentures as of September 30, 2021 and December 31, 2020 is as follows:
Schedule of Debentures
Payment of all outstanding debentures totaling $12.7 million, including late-payment penalties, at December 31, 2020 was past due by the debentures’ original terms. The debentures bear interest at the rate of 18% per annum and are secured by a first priority lien on all of the Company’s assets. 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.
The Company accrued interest expense on outstanding debentures during the three months ended September 30, 2021 and 2020 of $0.6 million and $1.5 million, respectively, and during the nine months ended September 30, 2021 and 2020 of $1.7 million and $5.4 million, respectively.
Certain of the debentures are convertible into shares of the Company’s common stock. On September 30, 2021, $2.6 million of principal amount of outstanding debentures were convertible into billion shares of the Company’s common stock at a price of $0.00027 per share and $5.6 million of outstanding debentures were convertible on that date into million shares of the Company’s common stock at a conversion price of $0.052. The remaining outstanding debentures of $4.5 million are non-convertible.
See Notes 3 and 11 for a discussion of the dilutive effect of the outstanding convertible debentures and warrants as of September 30, 2021 and Note 16 for the dilutive effect of outstanding convertible debentures and warrants as of November 10, 2021.
See Note 11 for a discussion of the exchange of certain debentures for shares of the Company’s Series N Preferred Stock on August 31, 2020 and Note 16 for a discussion of the exchange of certain debentures for shares of the Company’s Series P Preferred Stock.
No definition available.
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