High Wire Networks Inc (HWNI)

[junkHustler]

LOL. So they owed ICLD money to buy AWS and put forth a convertible note against SGSI at a rolling discount to current share price?


(h) The Company also issued Intercloud a convertible note with a principal amount of $793,894 to settle a contingent liability of $793,893 owed as a result of the acquisition of AWS. The note is due on August 16, 2019 and bears interest at 1% per annum. The note is convertible into common shares of the Company at a conversion price equal to the 80% of the lowest volume-weighted average price during the 5 trading days immediately preceding the date of conversion.

The embedded conversion option qualifies for derivative accounting and bifurcation under ASC 815-15 “ Derivatives and Hedging ”. The initial fair value of the conversion feature of $348,000 resulted in a discount to the note payable of $348,000. During the three-month period ended March 31, 2018, the Company recorded accretion of $18,895 increasing the carrying value of the notes to $464,789.

What a disaster.

GLTA & JMO