Quarterly report pursuant to Section 13 or 15(d)

Notes Payable - Related Parties - Schedule of Notes Payable to Related Parties (Details)

v3.19.1
Notes Payable - Related Parties - Schedule of Notes Payable to Related Parties (Details) - USD ($)
 3 Months Ended
Oct. 30, 2018
Mar. 31, 2019
Dec. 31, 2018
Notes payable - related parties, net   $ 1,235,000 $ 1,177,000
Non-current   (1,065,000) (1,065,000)
Current   $ 170,000 112,000
Unsecured Promissory Note 1 [Member]      
Issuance Date [1]   Dec. 01, 2015  
Maturity Date [1]   Feb. 08, 2021  
Interest Rate [1]   12.00%  
Original Borrowing [1]   $ 1,249,000  
Notes payable - related parties, net [1]   $ 825,000  
Note 1 [Member]      
Notes payable - related parties, net [1]     825,000
Note 2 [Member]      
Issuance Date [2]   Dec. 01, 2015  
Maturity Date Apr. 29, 2019 Apr. 01, 2021 [2]  
Interest Rate 5.00% 12.00% [2]  
Original Borrowing [2]   $ 112,000  
Notes payable - related parties, net [2]   $ 112,000 [3] 112,000
Note 3 [Member]      
Issuance Date [4]   Apr. 04, 2016  
Maturity Date [4]   Jun. 04, 2021  
Interest Rate [4]   12.00%  
Original Borrowing [4]   $ 343,000  
Notes payable - related parties, net [4]   $ 240,000 [5] 240,000
Note 4 [Member]      
Issuance Date [6]   Mar. 22, 2019  
Maturity Date [6]   Apr. 30, 2019  
Interest Rate [6]   5.00%  
Original Borrowing [6]   $ 58,000  
Notes payable - related parties, net [6]   $ 58,000
[1] 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.
[2] 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 March 31, 2019, and December 31, 2018, the outstanding principal balance of the note was equal to $112,000, respectively. As of March 31, 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.
[3] On December 1, 2015, the Company issued a convertible note with Mr. Cutaia in the amount of $189,000 representing a portion of Mr. Cutaia's accrued salary for 2015. The note was unsecured, bore interest at a rate of 12% per annum, and matured in April 2017. The note was convertible into shares of Common Stock at a conversion price of $1.05 per share. On May 4, 2017, the Company entered into an extension agreement with Mr. Cutaia to extend the maturity date of the note from April 1, 2017 to August 1, 2018. All other terms of the note remain unchanged and there were no additional compensation or incentive given. As of December 31, 2017, the outstanding balance of the note amounted to $189,000. On September 30, 2018, Mr. Cutaia converted the entire outstanding principal amount of $189,000 into 180,000 shares of restricted Common Stock.
[4] 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 March 31, 2019, and December 31, 2018, the outstanding balance of the note amounted to $240,000, respectively.
[5] 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 December 31, 2017, and 2018, the outstanding principal balance of the note was equal to $112,000. As of December 31, 2018, the note was past due, and remains past due. The Company is currently in negotiations with the noteholder to settle the past due note.
[6] 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 is unsecured, bears interest rate of 5% per annum, and matures on April 30, 2019. As of March 31, 2019, the outstanding balance of the note amounted to $58,000. The note was subsequently paid in full in April 2019.