|9 Months Ended|
Sep. 30, 2019
|Notes Payable [Abstract]|
NOTE 7 NOTES PAYABLE
Notes payable consists of the following as of September 30, 2019 and December 31, 2018, respectively:
During the year ended December 31, 2018, the Company issued unsecured, 4% demand promissory notes to VCVC, LLC (VCVC) totaling $260,425. VCVC is the personal holding company of Vincent L. Celentano, who was our chairman and chief executive officer at the time of the notes. As of December 31, 2018, these notes had accrued interest of $10,252. Effective February 26, 2019, the Company applied $68,460 of note principal and $2,428 of accrued interest under these notes from a note receivable from an affiliated entity to VCVC. At December 31, 2018, these notes were recorded as Notes payable related party (See Note 8). At September 30, 2019, these notes had accrued interest of $9,802.
On March 26, 2019 and April 29, 2019, the Company entered financing arrangements to finance the insurance premiums for its liability coverage. The financings have an interest rate of 9.79% and last through March of 2020.
On September 3, 2019, the Company entered a financing arrangement with their landlord to borrow against their rent payments. The financing has an interest rate of 7% and lasts through May of 2020.
Interest expense for the Companys notes payable for the three and nine months ended September 30, 2019 was $2,410 and $4,892, respectively, compared to $0 and $386 to the three and nine months ended September 30, 2018. Accrued interest for the Companys notes payable at September 30, 2019 and December 31, 2018 was $9,802 and $0, respectively.
The entire disclosure for short-term debt.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef