Quarterly report pursuant to Section 13 or 15(d)

Notes Payable - Related Parties (Tables)

v3.19.2
Notes Payable - Related Parties (Tables)
6 Months Ended
Jun. 30, 2019
Debt Disclosure [Abstract]  
Schedule of Notes Payable to Related Parties

The Company has the following related parties notes payable as of June 30, 2019 and December 31, 2018:

 

Note   Issuance Date   Maturity Date   Interest Rate     Original Borrowing     Balance at
June 30, 2019
    Balance at
December 31, 2018
 
Note 1 (A)   December 1, 2015   February 8, 2021     12.0 %   $ 1,249,000     $ 825,000     $ 825,000  
Note 2 (B)   December 1, 2015   April 1, 2017     12.0 %     112,000       112,000       112,000  
Note 3 (C)   April 4, 2016   June 4, 2021     12.0 %     343,000       240,000       240,000  
Note 4 (D)   March 22, 2019   April 30, 2019     5.0 %     58,000       -       -  
Total notes payable – related parties                     1,177,000       1,177,000  
Non-current                         (1,065,000 )     (1,065,000 )
Current                           $ 112,000     $ 112,000  

 

  (A) On December 1, 2015, the Company issued a convertible note payable to Mr. Rory J. Cutaia, the Company’s majority stockholder and Chief Executive Officer, to consolidate all loans and advances made by Mr. Cutaia to the Company as of that date. The note bears interest at a rate of 12% per annum, secured by the Company’s assets, and will mature on February 8, 2021, as amended.

 

As of June 30, 2019, and December 31, 2018, the outstanding balance of the note amounted to $825,000, respectively.

 

  (B) On December 1, 2015, the Company issued a note payable to a former member of the Company’s board of directors, in the amount of $112,000, representing unpaid consulting fees as of November 30, 2015. The note is unsecured, bears interest rate of 12% per annum, and matured in April 2017. As of June 30, 2019, and December 31, 2018, the outstanding principal balance of the note was equal to $112,000, respectively. As of June 30, 2019, the note was past due, and remains past due. The Company is currently in negotiations with the noteholder to settle the past due note.
     
  (C)

On April 4, 2016, the Company issued a convertible note to Mr. Cutaia, in the amount of $343,000, to consolidate all advances made by Mr. Cutaia to the Company during the period December 2015 through March 2016. The note bears interest at a rate of 12% per annum, secured by the Company’s assets, and will mature on June 4, 2021, as amended.

 

As of June 30, 2019, and December 31, 2018, the outstanding balance of the note amounted to $240,000, respectively.

     
  (D)

On March 22, 2019, the Company issued a note payable to Mr. Jeff Clayborne, the Company’s Chief Financial Officer, in the amount of $58,000. The note was unsecured, bore interest at a rate of 5% per annum, and matured on April 30, 2019.

 

On April 11, 2019, the Company paid off the balance of $58,000.

 

As of June 30, 2019, the outstanding balance of the note was $0.