Annual report pursuant to Section 13 and 15(d)

Note 6 - Loan Payable, Related Parties

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Note 6 - Loan Payable, Related Parties
12 Months Ended
Dec. 31, 2017
Notes  
Note 6 - Loan Payable, Related Parties

NOTE 6 – LOAN PAYABLE, RELATED PARTIES

 

Christopher Maggiore

 

As of December 31, 2017 and 2016, Mr. Christopher Maggiore, a director and a significant shareholder of the Company, had cumulative balances of $176,405 and $176,405, respectively. The Company has agreed to pay 11% interest on this loan. During the years ended December 31, 2017 and 2016, the Company recorded interest on this indebtedness of $25,966 and $20,396, respectively.

 

HEP Investments, LLC

 

In addition to amounts owed to HEP Investments pursuant to Convertible Debt (see Note 7), as of January 1, 2016, the Company owed HEP Investments $178,702. During the year ended December 31, 2016, HEP Investments loaned the Company an additional $1,890,872. Pursuant to the terms of the agreement with HEP Investments, $2,000,000 of these loans were recorded as 11% Convertible Secured Promissory Notes, leaving a remaining balance of $69,574 as of December 31, 2016.

 

During the year ended December 31, 2017, HEP Investments loaned the Company $4,148,040 (see Note 7 - Convertible Debt). Pursuant to the terms of our agreement with HEP Investments, $4,000,000 of these loans were converted to 11% Convertible Secured Promissory Notes, leaving a remaining balance of $217,614 as of December 31, 2017.