| Schedule of Notes Payable to Related Parties |
The Company has the following related
parties notes payable as of June 30, 2018 and December 31, 2017:
| Note |
|
Issuance Date |
|
Maturity Date |
|
Interest Rate |
|
|
Original Borrowing |
|
|
Balance at
June 30,
2018
|
|
|
Balance at
December 31,
2017
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
| Note 1 (A) |
|
December 1, 2015 |
|
August 1, 2018 |
|
|
12.0 |
% |
|
$ |
1,248,883 |
|
|
$ |
1,198,883 |
|
|
$ |
1,198,883 |
|
| Note 2 |
|
December 1, 2015 |
|
August 1, 2018 |
|
|
12.0 |
% |
|
|
189,000 |
|
|
|
189,000 |
|
|
|
189,000 |
|
| Note 3 (B) |
|
December 1, 2015 |
|
April 1, 2017 |
|
|
12.0 |
% |
|
|
111,901 |
|
|
|
111,901 |
|
|
|
111,901 |
|
| Note 4 (C) |
|
August 4, 2016 |
|
December 4, 2018 |
|
|
12.0 |
% |
|
|
343,326 |
|
|
|
343,326 |
|
|
|
343,326 |
|
| Note 5 |
|
August 4, 2016 |
|
December 4, 2018 |
|
|
12.0 |
% |
|
|
121,875 |
|
|
|
121,875 |
|
|
|
121,875 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total notes payable – related parties, net |
|
|
|
|
|
|
|
|
|
$ |
1,964,985 |
|
|
$ |
1,964,985 |
|
| (A) |
Per the terms of the agreement, at Mr. Cutaia’s discretion (majority stockholder and Chief Executive Officer (CEO), he may convert up to $374,665 of outstanding principal, plus accrued interest thereon, into shares of common stock at a conversion rate of $0.07 per share. |
| |
|
| (B) |
As of June 30, 2018, and the date of this report, the note is past due. The Company is currently in negotiations with the note holder to settle the note payable. |
| |
|
| (C) |
A total of 30% of the note principal can be converted to shares of common stock at a conversion price $0.07 per share. |
|
The Company has the following
related parties outstanding notes payable as of December 31, 2017 and 2016:
| Note |
|
Issuance Date |
|
Maturity Date |
|
Interest Rate |
|
|
Original Borrowing |
|
|
Balance at
December 31, 2017
|
|
|
Balance at
December 31, 2016
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Note 1 |
|
December 1, 2015 |
|
August 1, 2018 |
|
|
12.0% |
|
|
$ |
1,203,242 |
|
|
$ |
1,198,883 |
|
|
$ |
1,198,883 |
|
| Note 2 |
|
December 1, 2015 |
|
August 1, 2018 |
|
|
12.0% |
|
|
|
189,000 |
|
|
|
189,000 |
|
|
|
189,000 |
|
| Note 3 |
|
December 1, 2015 |
|
April 1, 2017 |
|
|
12.0% |
|
|
|
111,901 |
|
|
|
111,901 |
|
|
|
111,901 |
|
| Note 4 |
|
August 4, 2016 |
|
December 4, 2018 |
|
|
12.0% |
|
|
|
343,326 |
|
|
|
343,326 |
|
|
|
343,326 |
|
| Note 5 |
|
August 4, 2016 |
|
December 4, 2018 |
|
|
12.0% |
|
|
|
121,875 |
|
|
|
121,875 |
|
|
|
121,875 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total notes payable – related parties |
|
|
|
|
|
|
|
|
$ |
1,964,985 |
|
|
$ |
1,964,985 |
|
|