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
9 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]  
Notes Payable and Long Term Loan

Note 5 - Notes Payable and Long Term Loan

 

Notes Payable

 

During the nine months ended September 30, 2018, the Company issued Convertible Notes (“Variable Notes”) totaling $923,870 for funding of $836,000 with original terms of one year and an interest rate of 10%, and a variable conversion rate 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 Fixed Rate Notes (“Fixed Rate Notes”) totaling $1,683,000 for funding of $1,500,000 with original terms of six months and an interest rate ranging from 10% to 12%.

 

The gross amount of all convertible notes with variable conversion rates outstanding at September 30, 2018 is $4,212,620, of which $1,488,750 is past maturity.

 

Notes payable to a related party in the aggregate amount of $270,000 were outstanding at September 30, 2018, of which $100,000 is past maturity.

 

As of September 30, 2018, other notes payable outstanding totaled $3,929,903, of which $1,329,903 is past maturity.

 

    September 30,     December 31,  
    2018     2017  
             
Notes payable at beginning of period   $ 7,356,144     $ 3,193,956  
Notes payable issued     2,606,870       5,837,070  
Settlements on note payable     (47,500 )     (95,597 )
Repayments of notes payable in cash     (375,500 )     (96,000 )
Less amounts converted to stock     (1,127,491 )     (1,483,285 )
Notes payable at end of period     8,412,523       7,356,144  
Less debt discount     (1,175,627 )     (2,624,984 )
    $ 7,236,896     $ 4,731,160  
                 
Notes payable issued to related parties   $ 270,000     $ 270,000  
Notes payable issued to non-related parties   $ 6,966,896     $ 4,461,160  

 

The maturity dates on the notes payable are as follows:

 

Twelve months ending,   Non-related parties    

Related

parties

    Total  
Past due   $ 2,818,653     $ 100,000     $ 2,918,653  
September 30, 2019     5,323,870       170,000       5,493,870  
Total   $ 8,142,523     $ 270,000     $ 8,412,523