Debt Issuance Costs

The Company follows authoritative guidance for accounting for financing costs (as amended) as it relates to convertible debt issuance costs. These costs are deferred and amortized over the term of the debt period or until redemption of the convertible debentures. Debt Issuance Costs are reported on the balance sheet as a direct deduction from the face amount of the related notes. Amortization of debt issuance costs amounted to $1,174,772 and $1,278,032 and are included in Interest Expense and Interest Expense – Related Parties on the condensed consolidated Statements of Operations for the three months ended March 31, 2019 and 2018, respectively. Unamortized Debt Issuance Costs in the amounts of $13,045 and $1,562,425 are netted against Convertible Notes Payable on the condensed consolidated Balance Sheets presented in these financial statements as of March 31, 2019 and December 31, 2018, respectively.