10. Notes Payable

Insurance Note Payable

As of September 30, 2020 and 2019, the Company had the following insurance notes payable outstanding:

Convertible Notes Payable

During the year ended September 30, 2019, the Company entered into convertible note agreements with investors with an aggregate principal of $0.6 million. Together with outstanding convertible note as of September 30, 2018 of $0.3 million,  the aggregate principal amount of the convertible notes was $0.9 million and were due one to two years from issuance, no later February 2021, with simple interest at the rate of 6% per annum. 

The outstanding principal and accrued interest of each convertible note automatically converted into shares of Legacy NeuBase common stock, upon the issuance of Legacy NeuBase common stock in connection with the pre-acquisition financing, by dividing the then-outstanding balance of each convertible note by 90% of the purchase price per share paid by investors in the pre- acquisition financing, or $1.6145.  In connection with the closing of the pre-acquisition financing, the convertible notes plus unpaid interest were converted into 598,472 shares of Legacy NeuBase common stock at a price of $1.6145 per share.  Upon the consummation of the Ohr Acquisition, the convertible note shares were converted pursuant to the Exchange Ratio in the Acquisition Agreement into the right to receive 609,874 shares of common stock.

During the year ended September 30, 2019, the Company recognized cumulative interest expense of $0.1 million, which includes approximately $0.1 million related to the amortization of the discount on the convertible note agreements.