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