NOTES PAYABLE - RELATED PARTY
|9 Months Ended|
Sep. 30, 2019
|Notes Payable - Related Party|
|NOTES PAYABLE - RELATED PARTY||
NOTE 8 NOTES PAYABLE RELATED PARTY
On May 25, 2017 and June 2, 2017, the Company received $5,000 and $10,000, respectively, from its former director, Vincent L. Celentano, in the form of two demand notes. These notes were payable on demand and bore an interest rate of 7%. On February 26, 2019, principal of $15,000 and interest in the amount of $1,839 were converted upon the application of an $87,727 note receivable balance from an entity controlled by Mr. Celentano.
See (a) in Note 7 for information regarding this note
On March 28, 2018, the Company borrowed $50,000 under a credit line from EAC Management, LLC (EAC), an entity owned by Edward Cespedes, our former Chief Executive Officer. On September 19, 2018, EAC granted the Company an initial extension until October 15, 2018, which was subsequently extended through May 1, 2019, to repay the credit line which was originally called due on April 13, 2018. At December 31, 2018, the credit line had a balance of $50,000 and accrued interest of $2,500. On April 11, 2019, the Company entered into a settlement agreement with EAC whereby it repaid this obligation. In conjunction with this repayment, EAC forgave interest in the amount of $3,192 and $32,000 of past due consulting fees. The $32,000 forgiveness resulted in a gain on the settlement of a payable. No additional amounts are due with respect to the credit line.
Interest expense for the Companys notes payable related party for the three and nine months ended September 30, 2019 was $0 and $1,926, respectively, compared to $7,165 and $24,237 to the three and nine months ended September 30, 2018. Accrued interest for the Companys notes payable related party at September 30, 2019 and December 31, 2018 was $0 and $14,427, respectively.