Convertible Debt Related Party Disclosures
|6 Months Ended|
Sep. 30, 2018
|Convertible Debt Related Party Disclosures||
NOTE 6 - CONVERTIBLE DEBT RELATED PARTY
The carrying value of the Notes, as of September 30, 2018 and March 31, 2018 is comprised of the following:
As of September 30, 2018, the estimated aggregate fair value of outstanding convertible notes payable is approximately $0.2 million. The fair value estimate is based on the estimated option value of the conversion terms. The estimated fair value represents a Level 3 measurement.
In September 2018 the holder converted $100,000 of principal and $25,789 $0.1 of interest into approximately 10.7 million shares of common stock. The fair market value of the shares issued of $0.3 million exceeded the net carrying value of the convertible notes by $0.1 million and a loss on extinguishment was recorded.
The analysis utilized in calculating the embedded derivative at September 30, 2018 and March 31, 2018 was calculated using the following key inputs:
The fair value estimate of the embedded derivative is a Level 3 measurement. The roll-forward of the Level 3 fair value measurement, for the six months ended September 30, 2018, is as follows:
The remaining note which was due in July 2018 is in technical default, although the obligation has not been called by the lender.
The entire disclosure for accounts payable and accrued liabilities at the end of the reporting period.
Reference 1: http://www.xbrl.org/2003/role/presentationRef