| Schedule of Notes Payable to Related Parties |
The Company has the following related
parties notes payable as of September 30, 2019 and December 31, 2018:
| Note |
|
Issuance Date |
|
Maturity Date |
|
Interest Rate |
|
|
Original Borrowing |
|
|
Balance at
September 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 September 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 September 30, 2019 and December 31, 2018, the outstanding principal balance of the note was equal to $112,000, respectively. As of September 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, is secured by the Company’s
assets, and will mature on June 4, 2021, as amended.
As of September 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. Jeffrey 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 September 30, 2019, the outstanding balance
of the note was $0.
|
|