| Convertible Note Issuance Costs |
5.
Convertible Note Issuance Costs
The costs associated with the issuance of the Convertible Notes were recorded as a reduction to the carrying amount of the Convertible
Notes and are being amortized as interest expense within the statement of operations over the 14-month life of the notes:
| Issuance costs are as follows: |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
December
31, |
|
|
June 30, |
|
| |
|
2014 |
|
|
2015 |
|
| Placement fee |
|
$ |
553,490 |
|
|
$ |
553,490 |
|
| Fair value of Financing warrants at time
of issue |
|
|
212,155 |
|
|
|
212,155 |
|
| Attorney fees |
|
|
79,679 |
|
|
|
79,679 |
|
| Escrow fees |
|
|
3,500 |
|
|
|
3,500 |
|
| Beneficial conversion feature |
|
|
212,155 |
|
|
|
212,155 |
|
| Accumulated amortization |
|
|
(151,568 |
) |
|
|
(606,274 |
) |
| Net issuance costs |
|
$ |
909,411 |
|
|
$ |
454,705 |
|
| Convertible Notes |
|
$ |
6,000,000 |
|
|
$ |
6,000,000 |
|
| Convertible Notes discount net of amortization |
|
|
(909,411 |
) |
|
|
(454,705 |
) |
| Convertible Notes, net of discount |
|
$ |
5,090,589 |
|
|
$ |
5,545,295 |
|
|