Notes Payable |
12 Months Ended |
|---|---|
Dec. 31, 2015 | |
| Debt Disclosure [Abstract] | |
| Notes Payable |
4. NOTES PAYABLE
On September 30, 2014, the Company entered into a Demand Promissory Note with a third party lender for total borrowings of $100,000. The outstanding principal is due on demand, along with an additional interest fee of $5,000. The balance of the Demand Promissory Note as of December 31, 2015 and 2014 amounted to $100,000 at each date.
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 March 21, 2015, the Company entered into an agreement with DelMorgan Group LLC (DelMorgan), pursuant to which DelMorgan agreed to act as the Companys 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 December 31, 2015 in the accompanying 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 April 30, 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 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 were due in full on September 30, 2015. The outstanding balance on the note was paid by the Companys majority shareholder on September 30, 2015.
Total notes payable outstanding as of December 31, 2015 and 2014 amounted to $725,000 and $100,000 respectively. All outstanding amounts are either due on demand, or expected to become due in the next 12 months, and have therefore all been classified as current liabilities as of December 31, 2015 and 2014. |