Quarterly report pursuant to Section 13 or 15(d)

DEBT

v3.10.0.1
DEBT
9 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]  
DEBT

NOTE 4 – DEBT


Notes Payable - Financing Agreements



The Company’s notes payable relating to financing agreements classified as current liabilities consist of the following as of:


 

 

September 30, 2018

 

December 31, 2017

 

Notes Payable

 

Principal

 

 

 

Interest

 

Principal

 

 

 

Interest

 

Third Party - Insurance Note 1

 

$

2,219

 

 

 

10.30

%

 

$

25,075

 

 

 

10.30

%

 

Third Party - Insurance Note 2

 

 

19,804

 

 

 

10.00

%

 

 

11,679

 

 

 

10.00

%

 

Third Party - Insurance Note 3

 

 

25,818

 

 

 

8.80

%

 

 

 

 

 

 

 

 

Third Party - Insurance Note 4

 

 

21,197

 

 

 

10.25

%

 

 

12,903

 

 

 

9.24

%

 

Total

 

$

69,038

 

 

 

 

 

 

$

49,657

 

 

 

 

 

 


The Company entered into an agreement on December 23, 2017 with its insurance provider by executing a $25,075 note payable (Insurance Note 1) issued to purchase an insurance policy, secured by that policy with an annual interest rate of 10.30% payable in monthly installments of principal and interest totaling $2,234 through October 23, 2018. The balance of Insurance Note 1 as of September 30, 2018 and December 31, 2017 was $2,219 and $25,075, respectively.


The Company entered into an agreement on September 15, 2018 renewing with its insurance provider by executing a $15,810 note payable (Insurance Note 2), secured by that policy, with an annual interest rate of 10.75% payable in monthly installments of principal and interest totaling $1,660 through July 15, 2019. At September 30, 2018 and December 31, 2017, the balance of Insurance Note 2 was $19,804 and $11,679, respectively.


The Company entered into an agreement on February 3, 2018 with its insurance provider by executing a $127,561 note payable (Insurance Note 3) issued to purchase an insurance policy, secured by that policy with an annual interest rate of 8.80% payable in monthly installments of principal and interest totaling $13,276 through November 3, 2018. At September 30, 2018 and December 31, 2017, the balance of Insurance Note 3 was $25,818 and zero, respectively.


The Company entered into an agreement on April 15, 2017 with its insurance provider by executing a $49,000 note payable (Insurance Note 4) issued to purchase an insurance policy, secured by that policy with an annual interest rate of 9.24% payable in monthly installments of principal and interest totaling $4,373 through February 15, 2018. The policy renewed on April 15, 2018 in the amount of $49,000 with an annual interest rate of 10.25% payable in monthly installments of principal and interest totaling $4,378. At September 30, 2018 and December 31, 2017, the balance of Insurance Note 4 was $21,197 and $12,903, respectively.


Notes Payable - Related Parties


The Company’s notes payable to related parties classified as current liabilities consist of the following as of:


 

 

September 30, 2018

 

December 31, 2017

Notes Payable

 

Principal

 

Interest

 

Principal

 

Interest

CEO

 

$

 

 

8

%

 

$

9,078

 

 

8

%

Sub-total current portion

 

 

 

 

 

 

 

 

9,078

 

 

 

 

Add long-term portion-CEO

 

 

 

 

 

 

 

 

39,137

 

 

 

 

Total

 

$

 

 

 

 

 

$

48,215

 

 

 

 


On July 19, 2016, the Company received a $60,000 loan less fees of $75 for a related party loan with proceeds of $59,925 from the Company’s CEO. The promissory note carries an annual interest rate of 7.99% with a monthly installment payment of $1,052 through July 19, 2022. On January 5, 2018, the Company repaid the loan in full from the funds received in November 2017 as a result of that capital raise. As of September 30, 2018, and December 31, 2017, the outstanding balance was zero and $48,215, respectively.