Quarterly report pursuant to Section 13 or 15(d)

Notes Payable and Long Term Loan

v3.10.0.1
Notes Payable and Long Term Loan
6 Months Ended
Jun. 30, 2018
Debt Disclosure [Abstract]  
Notes Payable and Long Term Loan

Note 5 - Notes Payable and Long Term Loan

 

Notes Payable

 

During the six months ended June 30, 2018, the Company issued two Convertible Notes (“Variable Notes”) totaling $367,370 for funding of $325,000 with an original terms of one year with interest rates of 10%, and a variable conversion rates with discounts of 35% of the Company’s common stock based on the terms included in the Variable Note. The Variable Notes contains a prepayment option, which enables the Company to prepay the note subsequent to issuance at a premiums of 135%. The Company also issued two Fixed Rate Notes (“Fixed Rate Notes”) totaling $583,000 for funding of $500,000 with an original term of six months and an interest rate of 12%.

 

The gross amount of all convertible notes with variable conversion rates outstanding at June 30, 2018 is $4,116,120, of which $1,528,750 are past maturity.

 

Notes payable to a related party in the aggregate amount of $270,000 were outstanding at June 30, 2018.

 

As of June 30, 2018, other notes payable outstanding totaled $3,102,903, of which $919,903 are past maturity.

 

    June 30, 2018     December 31, 2017  
             
Notes payable at beginning of period   $ 7,356,144     $ 3,193,956  
Notes payable issued     950,370       5,837,070  
Settlements on note payable     (47,500 )     (95,597 )
Repayments of notes payable in cash     (12,500 )     (96,000 )
Less amounts converted to stock     (757,491 )     (1,483,285 )
Notes payable at end of period     7,489,023       7,356,144  
Less debt discount     (1,355,554 )     (2,624,984 )
    $ 6,133,469     $ 4,731,160  
                 
Notes payable issued to related parties   $ 270,000     $ 270,000  
Notes payable issued to non-related parties   $ 5,863,469     $ 4,461,160  

 

The maturity dates on the notes payable are as follows: 

 

Twelve months ending,   Non-related parties     Related parties     Total  
Past due   $ 2,448,653     $ -     $ 2,448,653  
June 30, 2019     4,770,370       270,000       5,040,370  
Total   $ 7,219,023     $ 270,000     $ 7,489,023