paid-in-capital, total shareholders’ equity and total capitalization by approximately $651,000, after deducting estimated underwriters’ fees and estimated offering expenses payable by us. The as adjusted information discussed above is illustrative only and will adjust based on the actual public offering price and other terms of this offering determined at pricing.
(3)
As of June 30, 2016, our indebtedness and accrued interest consist of (i) notes payable to directors and officers in the aggregate principal amount of $2,162,492 and interest accrued thereon in an aggregate amount of $322,730, (ii) a convertible term loan from Trooien Capital, due December 2016, interest at 10%, in the principal amount of $2,300,000 and interest accrued thereon in an aggregate amount of $484,959, (iii) convertible notes, due December 2016 and June 2017, interest 0%, in the aggregate principal amount of $650,126, (iv) a series subordinated note, due January 2016, interest at 12%, in the principal amount of $415,398 and interest accrued thereon in an aggregate amount of $26,904, (v) notes payable, due the earlier of raising $10,000,000 in proceeds from private placements or August 2016, interest between 8.25% and 12%, in the aggregate principal amount of $67,082 and interest accrued thereon in an aggregate amount of $28,305, (vi) note payable, due August 2021, interest 0%, in the aggregate principal amount of $192,000, and (vii) installment note payable to bank in the aggregate principal amount of $286,637. The aggregate principal amount of our total outstanding indebtedness as of June 30, 2016 described above is $6,073,735. After deducting unamortized deferred financing costs of $118,934 (as of June 30, 2016), the aggregate principal amount of our total net indebtedness as of June 30, 2016 described above is $5,954,801, of which the current portion is $5,582,897 and the long-term portion is $371,904. The aggregate amount of accrued interest as of June 30, 2016 described above is $862,899. For additional information, see note 4 to our unaudited condensed consolidated financial statements included elsewhere in this prospectus.
(4)
Current portion of long-term debt and accrued interest on an actual basis as of June 30, 2016 excludes (i) the indebtedness in the aggregate principal amount of $360,000 owed to James L. Davis under convertible notes issued to Mr. Davis on July 13, 2016, for which we have an obligation to repay a 20% premium, resulting in an aggregate principal amount of $432,000 currently outstanding under these notes, (ii) the indebtedness in the aggregate principal amount of $240,000 owed to Michael J. Hanson under convertible notes issued to Mr. Hanson on July 14, 2016, for which we have an obligation to repay a 20% premium, resulting in an aggregate principal amount of $288,000 currently outstanding under these notes, (iii) the indebtedness in the aggregate principal amount of $526,315 owed to Columbus Capital under convertible notes, due August 11, 2017, issued to Columbus Capital on August 11, 2016, (iv) the indebtedness in the principal amount of $263,158 owed to James L. Davis under convertible notes, due August 12, 2017, issued to Mr. Davis on August 12, 2016, (v) the indebtedness in the principal amount of $263,158 owed to Michael J. Hanson under convertible notes, due August 12, 2017, issued to Mr. Hanson on August 12, 2016, (vi) the indebtedness in the principal amount of $50,000 owed to Alice Ann Corporation under convertible notes, due September 15, 2017, issued to Alice Ann Corporation on September 15, 2016, and (vii) the indebtedness in the principal amount of $50,000 owed to Robert G. Allison under convertible notes, due September 15, 2017, issued to Robert G. Allison on September 15, 2016.
(5)
Warrant and conversion feature liability on an actual basis represents (i) the aggregate amount of fair value adjustments made with respect to warrants to purchase an aggregate of 1,210,046 shares of our common stock that as of June 30, 2016 include price-protection features arising from certain anti-dilution adjustment provisions included in the warrants, which warrants are carried at fair value as at June 30, 2016, and (ii) the aggregate amount of fair value adjustments made with respect to the conversion feature in the Columbus Capital convertible notes, due June 1, 2017, in an aggregate principal amount of $1,052,632, issued to Columbus Capital on June 1, 2016. Warrant and conversion feature liability on a pro forma, as adjusted basis, gives effect to (i) the termination of such price protection features in warrants to purchase an aggregate of 1,090,134 shares of our common stock, (ii) the conversion of the Columbus Capital convertible notes, due June 1, 2017, in an aggregate principal amount of $1,052,632, issued to Columbus Capital on June 1, 2016, (iii) the conversion of the Columbus Capital convertible notes, due August 11, 2017, in an aggregate principal amount of $526,315, issued to Columbus Capital on August 11, 2016, (iv) the conversion of convertible notes, due