4. Convertible Promissory Note |
6 Months Ended |
|---|---|
Jun. 30, 2017 | |
| Debt Disclosure [Abstract] | |
| Convertible Promissory Note |
On June 30, 2017, the Company received $420,000 through a convertible promissory note from an unrelated third party. The note bears interest at 10% per annum, is due on June 30, 2020 and is unsecured. The convertible promissory note contains a provision that allows the note holder to convert the outstanding balance into shares of the Company's common stock at $1.75 per shares. The Company determined that the convertible promissory note contained a beneficial conversion feature that was valued at $438,000; however, the amount recorded as the beneficial conversion feature is limited to the face amount of the convertible promissory note. This beneficial conversion feature of $420,000 has been recorded in the financial statements to additional paid-in capital and as a discount to the convertible promissory payable. The debt discount is being amortized over the terms of the convertible promissory note. The Company recognized interest expense of $0 during the six months ended June 30, 2017 related to the amortization of the debt discount. |