Quarterly report pursuant to Section 13 or 15(d)

Notes Payable and Long Term Loan

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Notes Payable and Long Term Loan
3 Months Ended
Mar. 31, 2018
Debt Disclosure [Abstract]  
Notes Payable and Long Term Loan

Note 5 - Notes Payable and Long Term Loan

 

Notes Payable

 

During the three months ended March 31, 2018, the Company issued one Convertible Note (“Variable Note”) totaling $147,370 for funding of $125,000 with an original term of one year with an interest rate of 10%, and a variable conversion rate with a discount of 35% of the Company’s common stock based on the terms included in the Variable Note. The Variable Note contains a prepayment option, which enables the Company to prepay the note subsequent to issuance at a premium of 135%. The Company also issued one Fixed Rate Note (“Fixed Rate Note) totaling $275,000 for funding of $250,000 with an original term of six months and an interest rate of 12%.

 

The gross amount of all Variable Notes outstanding at March 31, 2018 is $4,236,120, of which $608,750 are past maturity.

 

Notes payable to a related party in the aggregate amount of $270,000 were outstanding at March 31, 2018.

 

As of March 31, 2018, other notes payable outstanding totaled $2,794,903, of which $1,019,903 are past maturity.

 

    March 31, 2018     December 31, 2017  
             
Notes payable at beginning of period   $ 7,356,144     $ 3,193,956  
Notes payable issued     422,370       5,837,070  
Settlements on note payable     -       (95,597 )
Repayments of notes payable in cash     -       (96,000 )
Less amounts converted to stock     (477,491 )     (1,483,285 )
Notes payable at end of period     7,301,023       7,356,144  
Less debt discount     (1,839,636 )     (2,624,984 )
    $ 5,461,387     $ 4,731,160  
                 
Notes payable issued to related parties   $ 270,000     $ 270,000  
Notes payable issued to non-related parties   $ 5,191,387     $ 4,461,160  

 

The maturity dates on the notes payable are as follows:

 

Twelve months ending,   Non-related parties     Related parties     Total  
Past due   $ 1,628,653     $       -     $ 1,628,653  
March 31, 2019     5,402,370       270,000       5,672,370  
Total   $ 7,031,023     $ 270,000     $ 7,301,023  

 

Long Term Loan

 

The Company has financed the purchase of an automobile. The maturity dates on the loan are as follows:

 

Twelve months ending,      
March 31, 2019   $ 1,064  
    $ 1,064  
         
Current portion   $ 1,064  
Long term portion   $ -