NOTES PAYABLE
 3 Months Ended
Mar. 31, 2018
Debt Disclosure [Abstract]  
NOTES PAYABLE

NOTE 5. Notes Payable

 

The following tables summarize notes payable as of March 31, 2018 and December 31, 2017:

 

Notes Payable

 

   Original  Issuance Maturity  InterestBalance atBalance at
Type  Amount  Date Date  RateMar 31, 2018Dec 31, 2017
Note Payable  $150,000.00    5/18/2016    6/1/2018    13.00%  $150,000.00   $150,000.00 
Note Payable*  $50,000.00    10/18/2016    8/18/2017    5.00%  $50,000.00   $50,000.00 
Note Payable*  $25,000.00    4/12/2017    10/12/2017    5.00%  $25,000.00   $25,000.00 
Note Payable, RP  $25,000.00    4/27/2017    4/27/2018    3.00%  $17,500.00   $12,500.00 
Note Payable  $25,000.00    5/8/2017    10/10/2017    0.00%  $25,000.00   $25,000.00 
Note Payable, RP  $15,000.00    5/15/2017    5/15/2018    5.00%  $15,000.00   $15,000.00 
Note Payable, RP  $10,000.00    6/12/2017    6/12/2018    3.00%  $10,000.00   $10,000.00 
Note Payable, RP  $5,500.00    7/3/2017    6/30/2018    3.00%  $5,500.00   $5,500.00 
Note Payable, RP  $2,500.00    7/10/2017    6/30/2018    3.00%  $2,500.00   $2,500.00 
Note Payable, RP  $2,500.00    7/12/2017    6/30/2018    3.00%  $2,500.00   $2,500.00 
Note Payable, RP  $25,000.00    7/13/2017    6/30/2018    3.00%  $25,000.00   $25,000.00 
Note Payable*  $25,000.00    7/25/2017    9/25/2017    5.00%  $25,000.00   $25,000.00 
Note Payable, RP  $5,000.00    8/14/2017    6/30/2018    3.00%  $5,000.00   $5,000.00 
Note Payable  $50,000.00    9/1/2017    12/31/2017    8.00%  $50,000.00   $50,000.00 
Note Payable, RP**  $275,000.00    9/27/2017    10/1/2018    7.50%  $275,000.00   $275,000.00 
Note Payable  $25,000.00    9/27/2017    12/31/2017    8.00%  $25,000.00   $25,000.00 
Note Payable  $37,500.00    10/11/2017    10/11/2018    8.00%  $37,500.00   $37,500.00 
Note Payable*  $20,000.00    10/24/2017    4/24/2018    5.00%  $20,000.00   $20,000.00 
Note Payable, RP  $250,000.00    11/15/2017    12/15/2018    1.00%  $250,000.00   $250,000.00 
Note Payable, RP  $100,000.00    11/15/2017    10/1/2018    7.50%  $100,000.00   $100,000.00 
Note Payable  $56,000.00    12/1/2017    1/10/2018    8.00%  $—     $20,000.00 
Note Payable  $150,000.00    1/5/2018    4/3/2018    8.00%  $—     $—   
Note Payable  $12,500.00    2/16/2018    4/15/2018    8.00%  $12,500.00   $—   
Note Payable  $250,000.00    2/27/2018    4/30/2018    8.00%  $—     $—   
Note Payable  $450,000.00    3/28/2018    3/31/2021    8.00%  $350,000.00   $—   

* Indicates a re-classification from related party to non-related party, as of January 1, 2018.

**This note is collateralized by a patent (Note 4).

 

Effective on January 5, 2018, the Company entered into a promissory note with an unrelated party for $150,000. The note is due April 3, 2018, is unsecured and bears an interest rate of 8.0% per annum. Effective February 27, 2018 the Company extinguished its January 5, 2018 promissory note with an unrelated party of $150,000 and consolidated this amount into a new promissory note for $250,000 (an additional $100,000 received). The note is due on April 30, 2018, is unsecured and bears an interest rate of 8.0% per annum.

 

On March 28, 2018 the Company extinguished its February 27, 2018 promissory note with an unrelated party of $250,000 and consolidated this amount into a convertible note for $450,000 (an additional $100,000 received during the period and an additional $100,000 received subsequent to period end). The note is due on March 31, 2021 and is convertible into common stock at a conversion price of $0.4285 and bears interest of 8.0% per annum. This note also contains an anti-dilution clause, which becomes effective in the event the Company exceeds 60,000,000 issued shares of its stock. Due to the fact that the trading price of PCT stock was greater than the stated conversion rate of this note on the date of issuance, a total discount of $58,401 for the beneficial conversion was recorded against the note and will be amortized against interest expense through the life of the note. As of March 31, 2018, interest expense of $159 was recorded as part of the amortization of the beneficial conversion feature of this note. As of March 31, 2018, the note had a principal balance of $350,000.

 

Effective on February 16, 2018 the Company entered into a promissory note with an unrelated party for $12,500. The note is due April 15, 2018, is unsecured and bears an interest rate of 8% per annum.