NOTES PAYABLE |
9 Months Ended | ||
|---|---|---|---|
Sep. 30, 2015 | |||
| Notes Payable [Abstract] | |||
| NOTES PAYABLE |
On September 30, 2014, the Company issued an unsecured demand promissory note to a third party lender in the principal amount of $100,000. The outstanding principal is due on demand, along with an additional interest fee of $5,000.
On February 26, 2015, the Company entered into an unsecured loan agreement with a third party lender in the principal amount of $200,000. The loan bears interest at the rate of 12% per annum and is due on demand.
On February 26, 2015, the Company entered into an unsecured loan agreement with its majority shareholder in the principal amount of $100,000. The loan bears interest at the rate of 12% per annum and is due on demand.
On March 21, 2015, the Company entered into an agreement with DelMorgan Group LLC ("DelMorgan"), pursuant to which DelMorgan agreed to act as the Company's exclusive financial advisor. In connection with the agreement, the Company paid DelMorgan $125,000, which was advanced by a third party lender in exchange for an unsecured note payable issued by the Company bearing interest at the rate of 12% per annum payable monthly beginning on April 20, 2015. The note payable is due on the earlier of March 20, 2017, or upon completion of a private placement transaction, as defined in the agreement. The Company expects this transaction to take place in the next twelve months. As a result, the $125,000 note payable has been classified as a current liability as of June 30, 2015 in the accompanying condensed consolidated balance sheet.
On April 2, 2015, the Company entered into a loan agreement with a third party lender in the principal amount of $200,000. The loan bears interest at the rate of 12% per annum and is due on demand.
On April 15, 2015, the Company entered into a loan agreement with a third party lender in the principal amount of $50,000. The loan bears interest at the rate of 12% per annum and is due on demand.
On May 19, 2015, the Company entered into an unsecured loan agreement with its majority shareholder in the principal amount of $45,000. On June 11, 2015, the Company entered into an additional unsecured loan agreement with its majority shareholder for additional principal borrowings of $190,000. These loans all
bear interest at the rate of 12% per annum and are due on demand.
On May 26, 2015, the Company entered into an unsecured demand promissory note with a third party lender in the principal amount of $100,000. The note bears interest at a rate of 20% per annum. The principal and accrued interest are due in full on September 30, 2015 The outstanding balance on the note amounting to $90,942 was paid by the Company’s majority shareholder on September 30, 2015. The amount paid by the majority shareholder is now reflected as an additional unsecured loan and is due on demand and bears interest at 12% per annum.
On various dates during the quarter ended September 30, 2015, the Company entered into additional unsecured loan agreements with its majority shareholder for total aggregate borrowings of $475,000. The amounts are due on demand and bear interest at 12% per annum.
As of September 30, 2015, total notes payable outstanding from the Company’s majority shareholder amounted to $900,942.
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