Quarterly report pursuant to Section 13 or 15(d)

NOTES PAYABLE - RELATED PARTY

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NOTES PAYABLE - RELATED PARTY
3 Months Ended
Mar. 31, 2020
Issued stock options to acquire common stock  
NOTES PAYABLE - RELATED PARTY

NOTE 7 – NOTES PAYABLE – RELATED PARTY


Related party notes payable totaled $100,000 and $0 at March 31, 2020 and December 31, 2019, respectively.


On January 16, 2020, the Company entered into a demand note agreement with our Board Chairman, Michael V. Barbera, in the amount of $50,000. The note has a term of 6 months bearing an interest rate of 10% per annum.  On April 13, 2020, an addendum was executed changing the terms of the note to a convertible note payable bearing an interest rate of 12% per annum.  Per the addendum, the principal and accrued interest is convertible at the option of the holder after June 5, 2020 at a 20% discount of that days’ closing price.


On January 16, 2020, the Company entered into a demand note agreement with an entity managed by Ronald J. LoRicco, Sr., a member of our Board of Directors, in the amount of $50,000. The note has a term of 6 months bearing an interest rate of 10% per annum.  On April 13, 2020, an addendum was executed changing the terms of the note to a convertible note payable bearing an interest rate of 12% per annum.  Per the addendum, the principal and accrued interest is convertible at the option of the holder after June 5, 2020 at a 20% discount of that days’ closing price.


Interest expense for the Company’s notes payable for the three months ended March 31, 2020 and 2019 was $2,091 and $11,456, respectively. Accrued interest for the Company’s notes payable at March 31, 2020 and December 31, 2019 was $2,091 and $0, respectively.