RELATED PARTY - PROMISSORY NOTE | 8. RELATED PARTY – Promissory Note The Company obtained short-term cash flow from a related party in the form of three demand Notes Payable in the aggregate amount of $10,000 which have been outstanding since the year ended December 31, 2012. Two notes were amended and extended during 2014, and one note was amended and extended during the quarter ended September 30, 2015, changing the maturity date to one year later than what was on original notes. The Notes bear an interest rate of 7% per annum and are unsecured. The Company as of March 31, 2016 has outstanding notes in the amount of $383,085. Note Principal Rate Accrued interest Maturity 3/31/16 12/31/15 Promissory note 1 $ 6,000 7 % $ 1,499 $ 1,395 9/4/2016 Promissory note 2 $ 2,000 7 % $ 489 $ 454 10/1/2017 Promissory note 3 $ 2,000 7 % $ 465 $ 430 12/3/2017 Total $ 10,000 $ 2,453 $ 2,279 The Company obtained short-term cash flow from a related party in the form of nine demand Notes Payable in the aggregate amount of $70,953 during the period from 2012 through December 31, 2014. During the quarters ended September 30, 2015, June 30, 2015 and March 31, 2015 the Company borrowed $53,000, $115,000 and $60,000, respectively, in the form of eight demand notes. The Company repaid the principal amount of $453 during the year ended December 31, 2014, and $1,199 during the quarter ended March 31, 2015, and $700 during the quarter ended June 30, 2015. Notes 1 through 6 were amended and extended during 2014, changing the maturity date to one year later than what was on original notes. Notes 1 and 6 were amended again during the quarter ended September 30, 2015, changing the maturity date to one year later than what was on original notes. The Notes bear an interest rate of 7% per annum and are unsecured. Note Principal Rate Accrued interest Maturity 3/31/16 12/31/15 Promissory note 1 $ 5,000 7 % $ 1,258 $ 1,171 7/25/2016 Promissory note 2 $ 11,000 7 % $ 2,648 $ 2,456 10/22/2017 Promissory note 3 $ 15,000 7 % $ 3,515 $ 3,254 11/24/2017 Promissory note 4 $ 102 7 % $ 25 $ 23 10/22/2017 Promissory note 5 $ 879 7 % $ 206 $ 191 11/24/2017 Promissory note 6 $ 973 7 % $ 245 $ 228 7/25/2016 Promissory note 7 $ 22,147 7 % $ 3,137 $ 2,750 5/4/2016 Promissory note 8 $ 7,000 7 % $ 640 $ 518 12/11/2016 Promissory note 9 $ 6,000 7 % $ 536 $ 432 12/22/2016 Promissory note 10 $ 25,000 7 % $ 2,153 $ 1,716 1/8/2017 Promissory note 11 $ 35,000 7 % $ 2,826 $ 2,215 2/5/2017 Promissory note 12 $ 40,000 7 % $ 2,754 $ 2,056 4/8/2017 Promissory note 13 $ 30,000 7 % $ 1,910 $ 1,387 5/5/2017 Promissory note 14 $ 45,000 7 % $ 2,435 $ 1,648 6/24/2017 Promissory note 15 $ 25,000 7 % $ 1,189 $ 753 7/28/2017 Promissory note 16 $ 15,000 7 % $ 647 $ 385 8/20/2017 Promissory note 17 $ 13,000 7 % $ 481 $ 254 9/21/2017 Promissory note 18 $ 5,000 7 % $ 175 $ 88 10/13/2017 Promissory note 19 $ 10,000 7 % $ 295 $ 121 10/30/2017 Promissory note 20 $ 3,000 7 % $ 62 $ 10 12/15/2017 Promissory note 21 $ 17,000 7 % $ 352 $ 55 12/15/2017 Total $ 331,101 $ 27,489 $ 21,711 The Company obtained short-term cash flow from a related party in the form of five demand Notes Payable in the aggregate amount of $6,504 during the period from 2012 through March 31, 2013, and $1,780 during the quarter ended March 31, 2016. Notes 1 and 2 were amended and extended during 2014, changing the maturity date to one year later than what was on original notes. Notes 3 and 4 were amended and extended during the quarter ended March 31, 2015, changing the maturity date to one year later than what was on original notes, and then amended and extended during the quarter ended March 31, 2016 changing the maturity date to two years later than what was on amended notes. The Notes bear an interest rate of 7% per annum and are unsecured. Note Principal Rate Accrued interest Maturity 3/31/16 12/31/15 Promissory note 1 $ 234 7 % $ 54 $ 50 12/5/2017 Promissory note 2 $ 170 7 % $ 40 $ 37 11/18/2017 Promissory note 3 $ 4,100 7 % $ 904 $ 833 2/5/2018 Promissory note 4 $ 2,000 7 % $ 440 $ 405 2/7/2018 Promissory note 5 $ 1,780 7 % $ 1 $ - 3/29/2018 Total $ 8,284 $ 1,439 $ 1,325 The Company obtained short-term cash flow from a related party in the form of two demand Notes Payable in the aggregate amount of $18,000 during the year of 2013. Both notes were amended and extended during the quarter ended March 31, 2015, changing the maturity date to one year later than what was on original notes, and amended and extended during the quarter ended March 31, 2016 changing the maturity date to two years later than what was on amended notes. The Notes bear an interest rate of 7% per annum and are unsecured. Note Principal Rate Accrued interest Maturity 3/31/16 12/31/15 Promissory note 1 $ 10,000 7 % $ 2,175 $ 2,000 2/21/2018 Promissory note 2 $ 8,000 7 % $ 1,702 $ 1,562 3/18/2018 Total $ 18,000 $ 3,877 $ 3,562 The Company obtained short-term cash flow from a related party in the form of one demand Note Payable in the aggregate amount of $6,000 during the year of 2014, and three demand Notes Payable in the aggregate amount of $9,700 during the quarter ended March 31, 2016. The Note bears an interest rate of 7% per annum and is unsecured. Note Principal Rate Accrued interest Maturity 3/31/16 12/31/15 Promissory note 1 $ 6,000 7 % $ 695 $ 590 8/6/2016 Promissory note 2 $ 2,500 7 % $ 42 $ - 1/4/2018 Promissory note 3 $ 4,200 7 % $ 20 $ - 2/5/2018 Promissory note 4 $ 3,000 7 % $ 7 $ - 3/20/2018 Total $ 15,700 $ 764 $ 590 During the three months ended March 31, 2016 the total amount of related party loan proceeds was $11,480. The total interest accrued on related party loans at March 31, 2016 and December 31, 2014 was $36,022 and $29,467, respectively. From time to time, the Company advances amounts to stockholders, as well as receives payments from stockholders in the form of cash and/or out-of-pocket expenditures for the benefit of the Company, which are business in nature. The balance of advances to stockholder as of March 31, 2016 and December 31, 2015 was $-0- and $11,321, respectively. Amounts accrued, but not yet paid as due to related party at March 31, 2016 and December 31, 2015 was $25,000 and $25,000, respectively. |