RELATED PARTY - Promissory Note | 7. RELATED PARTY – Promissory Note The Company obtained financing from five different related parties from 2012 through June 30, 2017. As of June 30, 2017, 84.54% of the short-term financing is from Arthur Read, the Company’s Executive Vice-President, General Counsel and Director. The accrued interest payable to Mr. Read is $59,229. The following are breakdowns for the promissory notes issued to all five related parties. The Company obtained financing from a related party in the form of three demand Notes Payable in the aggregate amount of $10,000 which has been outstanding since the year ended December 31, 2012. All three notes have been amended, extending the maturity dates. See maturity dates on table below. The Notes bear an interest rate of 7% per annum and are unsecured. Note Principal Rate Accrued interest Maturity 6/30/17 12/31/16 Promissory note 1 $ 6,000 7 % $ 2,024 $ 1,816 9/4/2018 Promissory note 2 $ 2,000 7 % $ 664 $ 594 10/1/2017 Promissory note 3 $ 2,000 7 % $ 640 $ 571 12/3/2017 Total $ 10,000 $ 3,328 $ 2,981 The Company obtained financing from a related party in the form of twenty-two demand Notes Payable in the aggregate amount of $381,101 during the period from 2012 through June 30, 2017. The Company repaid a total of $2,353 of the principal on Note 7 during the years ended December 31, 2014 and December 31, 2015. Note 23 in the amount of $6,308 was repaid in full in April 2017, however does have an accrued interest balance. Several of the notes have been amended and extended during the period from 2014 through June 30, 2017. See maturity dues on table below. Notes 1 - 21 bear an interest rate of 7% per annum and are unsecured. Notes 22 and 23 bear interest rates of 20% which began accruing on March 23, 2017 and March 24, 2017, respectively. Note Principal Rate Accrued interest Maturity 6/30/17 12/31/16 Promissory note 1 $ 5,000 7 % $ 1,695 $ 1,522 7/25/2018 Promissory note 2 $ 11,000 7 % $ 3,610 $ 3,228 10/22/2017 Promissory note 3 $ 15,000 7 % $ 4,827 $ 4,306 11/24/2017 Promissory note 4 $ 102 7 % $ 33 $ 30 10/22/2017 Promissory note 5 $ 879 7 % $ 283 $ 252 11/24/2017 Promissory note 6 $ 973 7 % $ 330 $ 296 7/25/2018 Promissory note 7 $ 22,147 7 % $ 5,074 $ 4,305 5/4/2018 Promissory note 8 $ 7,000 7 % $ 1,253 $ 1,010 12/11/2018 Promissory note 9 $ 6,000 7 % $ 1,061 $ 853 12/22/2018 Promissory note 10 $ 25,000 7 % $ 4,339 $ 3,471 1/8/2018 Promissory note 11 $ 35,000 7 % $ 5,887 $ 4,672 2/5/2018 Promissory note 12 $ 40,000 7 % $ 6,252 $ 4,864 4/8/2018 Promissory note 13 $ 30,000 7 % $ 4,534 $ 3,492 5/5/2018 Promissory note 14 $ 45,000 7 % $ 6,369 $ 4,807 6/24/2018 Promissory note 15 $ 25,000 7 % $ 3,375 $ 2,508 7/28/2017 Promissory note 16 $ 15,000 7 % $ 1,959 $ 1,438 8/20/2017 Promissory note 17 $ 13,000 7 % $ 1,618 $ 1,167 9/21/2017 Promissory note 18 $ 5,000 7 % $ 613 $ 439 10/13/2017 Promissory note 19 $ 10,000 7 % $ 1,170 $ 823 10/30/2017 Promissory note 20 $ 3,000 7 % $ 324 $ 220 12/15/2017 Promissory note 21 $ 17,000 7 % $ 1,839 $ 1,249 12/15/2017 Promissory note 22 $ 50,000 20 % $ 2,712 $ - 12/31/2017 Promissory note 23 $ - 20 % $ 73 $ - 12/31/2017 Total $ 381,101 $ 59,229 $ 44,952 The Company obtained financing from a related party in the form of six demand Notes Payable in the aggregate amount of $9,409 during the period from 2012 through December 31, 2016. Notes 1 - 4 were amended and extended. See maturity dates on table below. The Notes bear an interest rate of 7% per annum and are unsecured. Note Principal Rate Accrued interest Maturity 6/30/17 12/31/16 Promissory note 1 $ 234 7 % $ 75 $ 67 12/5/2017 Promissory note 2 $ 170 7 % $ 55 $ 49 11/18/2017 Promissory note 3 $ 4,100 7 % $ 1,263 $ 1,120 2/5/2018 Promissory note 4 $ 2,000 7 % $ 615 $ 546 2/7/2018 Promissory note 5 $ 1,780 7 % $ 157 $ 95 3/29/2018 Promissory note 6 $ 1,125 7 % $ 79 $ 40 6/30/2018 Total $ 9,409 $ 2,243 $ 1,917 The Company obtained financing 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, 2016. See maturity dates on table below. The Notes bear an interest rate of 7% per annum and are unsecured. Note Principal Rate Accured interest Maturity 6/30/17 12/31/16 Promissory note 1 $ 10,000 7 % $ 3,049 $ 2,702 2/21/2018 Promissory note 2 $ 8,000 7 % $ 2,401 $ 2,123 3/18/2018 Total $ 18,000 $ 5,450 $ 4,826 The Company obtained financing from a related party in the form of six demand Note Payables in the aggregate amount of $32,300 during the period from 2014 through December 31, 2016. The Notes bears an interest rate of 7% per annum and are unsecured. Note Principal Rate Accured interest Maturity 6/30/17 12/31/16 Promissory note 1 $ 6,000 7 % $ 1,220 $ 1,011 8/6/2018 Promissory note 2 $ 2,500 7 % $ 261 $ 174 1/4/2018 Promissory note 3 $ 4,200 7 % $ 387 $ 242 2/5/2018 Promissory note 4 $ 3,000 7 % $ 269 $ 165 3/20/2018 Promissory note 5 $ 11,500 7 % $ 805 $ 406 6/30/2018 Promissory note 6 $ 5,100 7 % $ 283 $ 106 8/8/2018 Total $ 32,300 $ 3,225 $ 2,104 During the six months ended June 30, 2017 the total amount of related party loan proceeds was $56,308, of which in April 2017 $6,308 was used to repay an outstanding balance under a note. The total interest accrued on related party loans at June 30, 2017 and December 31, 2016 was $73,475 and $56,777, respectively. Before the Company became public, $11,321 was advanced to one stockholder. In the 1 st |