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:
The note payable to Marvin Rosen, the Companys 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 Companys 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 Fusions common stock in conjunction with Fusions 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 Fusions common stock at conversion price of $2.18 per share of common stock, the closing bid price of Fusions common stock on December 4, 2015.