Quarterly report pursuant to Section 13 or 15(d)

Senior Secured Convertible Note Payable (Details Narrative)

v3.19.2
Senior Secured Convertible Note Payable (Details Narrative) - USD ($)
1 Months Ended 3 Months Ended 9 Months Ended
Mar. 12, 2019
Jun. 04, 2018
Dec. 20, 2018
May 31, 2019
Mar. 31, 2019
May 31, 2018
May 31, 2019
Mar. 31, 2019
May 31, 2018
Aug. 31, 2018
Convertible notes, Principal       $ 10,000,000     $ 10,000,000     $ 10,000,000
Warrants granted   1,004,016                
Warrants exercise price   $ 2.49                
Financing costs             $ 2,588,000    
Conversion price description             Conversion price is initially set at $2.49 but subject to down round price protection. After the maturity, the conversion price will be set subsequently at the lesser of the then conversion price and 85% of the volume weighted average price for the trading date immediately prior to the application conversion date; and Monthly amortization of principal either in cash at a 10% premium or in stock, subject to equity conditions, at a 15% discount to the lowest volume weighted average price, at the option of the Company.      
Non-cash charge           $ 2,200,000        
Amortization debt discount and debt issuance cost       957,222     $ 2,871,666      
Interest expense       72,671   $ 0 84,227   $ 0  
Accrued interest payable       23,169     23,169     608,889
Convertible debt principal amount       3,948,174     8,839,345      
Debt default amount recorded as other current liabilities                   3,500,000
Settlement amount                   2,600,000
Gain (loss) on settlement of convertible notes       0     2,600,000      
Debt instrument converted amount, principal       3,527,541     8,120,836      
Debt instrument converted amount, interest       $ 203,966     $ 501,844      
Debt instrument converted amount shares issued       3,405,079     6,364,506      
Amortized in cash amount             $ 435,606      
Convertible Notes Payable [Member]                    
Convertible notes, Principal       $ 4,750,000     $ 4,750,000    
Conversion price description             The Company has been converting the convertible notes in its shares of common stock at a fifteen percent (15%) discount to the lowest volume weighted average price (“VWAP”) whereas the terms of the agreement states that such discount to the original conversion price of $2.49 should have been initiated on or after the maturity date of the convertible notes or September 4, 2019.      
Non-cash charge         $ 3,828,550          
Amortization debt discount and debt issuance cost       $ 0 $ 727,111   $ 0 $ 727,111    
Institutional Investors [Member]                    
Convertible notes, Principal $ 4,750,000 $ 10,000,000                
Purchase price of notes $ 3,750,000 $ 9,000,000                
Interest rate   8.00%                
Maturity date Sep. 12, 2020 Sep. 04, 2019                
Proceeds from issuance of notes $ 3,300,000 $ 8,400,000                
Debt issuance costs $ 500,000 $ 600,000                
Warrants granted 2,840,909                  
Warrants exercise price $ 1.75                  
Price per share             $ 1.49      
Risk-free interest rate             2.49%      
Expected volatility             122.00%      
Fair value of the conversion feature derivative             $ 2,421,000      
Financing costs             $ 2,600,000      
Description for event of default If the Company defaults on the notes, then the Company will be charged a default interest rate of 18% until default is resolved.The terms of the notes provide for payment of 110% of all amount outstanding (including the principal amount of each note together with any accrued and unpaid interest and any other accrued and unpaid charges) at maturity on September 12, 2020.           The Company executed registration rights agreements with each of its institutional investors. These registration rights agreements require, among other things, that the initial registration statement should be (a) filed within 30 days of June 4, 2018, and (b) declared effective within 90 days of June 4, 2018. The Company’s registration statement was filed on October 1, 2018 and it was declared effective by the SEC on October 29, 2018; thus, both the filing and effectiveness deadlines were missed.      
Convertible debt principal amount     $ 888,889              
Conversion price $ 1.67                  
Debt default amount     $ 3,500,000              
Debt instrument converted amount, principal             $ 210,000      
Debt instrument converted amount shares issued             434,841      
Original issue discount $ 100,000                  
Institutional Investors [Member] | Warrant [Member]                    
Warrants granted             2,840,909      
Warrants exercise price             $ 1.75      
Maturity term             5 years      
Price per share             $ 1.49      
Risk-free interest rate             2.49%      
Expected volatility             122.00%      
Fair value of common stovk             $ 3,917,000      
Common stock shares issued upon conversion of senior secured convertible debt             6,799,347      
Investment bankers [Member]                    
Warrants granted 134,569                  
Warrants exercise price $ 1.75                  
Investment Banker [Member]                    
Warrants granted   216,867                
Warrants exercise price   $ 2.49