Processa Pharmaceuticals, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Notes Payable, Disclosure

Notes Payable, Disclosure

3 Months Ended

Mar. 31, 2017

Notes

Notes Payable, Disclosure

4. NOTES PAYABLE:

Notes consisted of the following as of March 31, 2017.

	Principal Balance		Interest Rate	Accrued Interest		Warrants issued	Warrant Fair Value - Discount		Unamortized Discount
Unsecured notes payable	$	420,000	12%	$	100,715	139,997	$	115,159	$	--
Secured notes payable		962,361	12% - 18%		335,417	--		--		--
Revolving line of credit		229,980	12% - 18%		66,988	--		--		--
	$	1,612,341		$	503,120	139,997	$	115,159	$	--

Based upon the Companys financial position, the Company does not believe it will be able to satisfy the mandatory principal payments in 2017. The Company will work with the lenders to explore extension or conversion options. There is no guarantee the lenders will accommodate our requests. The Company is in default in regard to interest payments on the notes, the Companys assets may be foreclosed upon.