Annual report pursuant to Section 13 and 15(d)

15. Notes Payable-Related Parties

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15. Notes Payable-Related Parties
12 Months Ended
Dec. 31, 2016
Pro forma financial information  
15. Notes Payable-Related Parties

At December 31, 2016 and 2015, components of notes payable – related parties are comprised of the following: 

 

 

    December 31,   December 31,  
    2016   2015  
Notes payable to Marvin Rosen 928,081   1,178,081  
Discount on notes (52,331)   (103,252)  
Total notes payable - non-related parties 875,750   1,074,829  

 

The note payable to Marvin Rosen, the Company’s Chairman of the Board, is subordinated to borrowings under the East West Credit Agreement and the Restated Purchase Agreement. This note is unsecured, pays interest monthly at an annual rate of 7%, and matures 120 days after the Company’s obligations under the East West Credit Agreement and the Restated Purchase Agreement are paid in full.

 

For the years ended December 31, 2016 and 2015, the Company paid interest on the notes payable to Mr. Rosen in the amount of $0.1 million. During the year ended December 31, 2016, Mr. Rosen converted $250,000 of the outstanding notes into 217,391 shares Fusion’s common stock in conjunction with Fusion’s private placement of common stock in November of 2016 (see note 16).

 

During the year ended December 31, 2015, Mr. Rosen converted $0.3 million of his outstanding notes into 137,615 shares of Fusion’s common stock at conversion price of $2.18 per share of common stock, the closing bid price of Fusion’s common stock on December 4, 2015.