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
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.
The maturity dates on the notes payable are as follows:
Long Term Loan
The Company has financed the purchase of an automobile. The maturity dates on the loan are as follows:
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://www.xbrl.org/2003/role/presentationRef