Quarterly report pursuant to Section 13 or 15(d)

Note 5 - Loan Payable, Related Parties

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Note 5 - Loan Payable, Related Parties
3 Months Ended
Mar. 31, 2018
Notes  
Note 5 - Loan Payable, Related Parties

NOTE 5 – LOAN PAYABLE, RELATED PARTIES

 

Christopher Maggiore

 

As of December 31, 2017 and March 31, 2018, Mr. Christopher Maggiore, a director and a significant shareholder of the Company, had a cumulative balance of funds loaned to the Company of $176,405 and $476,405, respectively. The Company has agreed to pay 11% interest on this loan.

 

During the three months ended March 31, 2018 and March 31, 2017, accrued interest on this indebtedness totaled $74,344 and $46,293, respectively.

 

HEP Investments, LLC

 

In addition to amounts owed to HEP Investments pursuant to Convertible Debt (see Note 6), as of January 1, 2017, the Company owed HEP Investments $69,574. During the year ended December 31, 2017, HEP Investments loaned the Company an additional $4,148,040. Pursuant to the terms of the agreement with HEP Investments, $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 quarter ended March 31, 2018, HEP Investments loaned the Company $355,000 (see Note 6 - Convertible Debt). Pursuant to the terms of our agreement with HEP Investments, $500,000 of these loans were converted to 11% Convertible Secured Promissory Notes, leaving a remaining balance of $72,614 as of March 31, 2018.