InterCloud Systems Inc. (ICLD)

[DonJohn]

The 10Q also states:
As of March 31, 2017, the Company did not have sufficient authorized shares for the remaining equity warrants to qualify as equity. Per ASC 815-40-35-9, the Company reclassified these warrants to a derivative liability at their fair value as of March 31, 2017. Based on a warrant to purchase up to a total of 2,500,000 shares of common stock and an underlying price of $0.03 per share, the Company recorded these warrants at fair value of $75 on the unaudited condensed consolidated balance sheet as of March 31, 2017.

On March 31, 2017 and December 31, 2016, the Company used a binomial lattice model to value the warrant derivative and determined the fair value to be $189 and $152, respectively. The Company recorded a gain on fair value of derivative instruments of $37 for the three months ended March 31, 2017 on the unaudited condensed consolidated statement of operations.

On April 1, 2017, the expiration date was extended until the Company’s proposed reverse-stock split is effected (refer to Note 16, Subsequent Events, for further detail).
All this means is the lenders are giving them some slack on when the note has to be paid until such time the RS is approved by FINRA. Translation: The RS can happen at any time from now until Aug 29th.