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, 2018
Notes  
Note 6 - Loan Payable, Related Parties

NOTE 6 – LOAN PAYABLE, RELATED PARTIES

 

Christopher Maggiore

 

As of December 31, 2018 and 2017, 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, 2018 and 2017, the Company recorded interest on this indebtedness of $45,172 and $25,966, respectively.

HEP Investments, LLC

 

In addition to amounts owed to HEP Investments, LLC pursuant to Convertible Debt (see Note 7), as of January 1, 2017, the Company owed HEP Investments, LLC $69,574. During the year ended December 31, 2017, HEP Investments, LLC loaned the Company an additional $4,148,040. Pursuant to the terms of the agreement with HEP Investments, LLC, $4,000,000 of these loans were recorded as 11% Convertible Secured Promissory Notes, leaving a remaining balance of $217,614 as of December 31, 2017.

 

During the year ended December 31, 2018, HEP Investments, LLC loaned the Company $1,751,187 (see Note 7 - Convertible Debt). Pursuant to the terms of our agreement with HEP Investments, LLC, $1,968,801 of these loans were converted to 11% Convertible Secured Promissory Notes, leaving a remaining balance of $0 as of December 31, 2018.