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
6 Months Ended
Jun. 30, 2018
Notes  
Note 5 - Loan Payable, Related Parties

NOTE 5 – LOAN PAYABLE, RELATED PARTIES

 

Christopher Maggiore

 

As of December 31, 2017, and June 30, 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 $176,405, respectively. The Company has agreed to pay 11% interest on this loan.

 

During the six months ended June 30, 2018, Mr. Maggiore advanced an additional $500,000 to the Company, and on May 1, 2018, he used $500,000 of his loan balance to fund the cash purchase of 5,000,000 units of the Company at $.10 per unit. Each unit consisted of share of common stock and warrants to purchase 20% of one share of common stock (1,000,000 warrants).

 

As of June 30, 2018, and June 30, 2017, accrued interest on the outstanding indebtedness totaled $95,083 and $53,113, respectively.

 

HEP Investments, LLC

 

In addition to amounts owed to HEP Investments pursuant for Due to Related Party (see Note 4) and 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 six months ended June 30, 2018, HEP Investments loaned the Company $1,286,187 (see Note 6 - Convertible Debt). Pursuant to the terms of our agreement with HEP Investments, $1,500,000 of these loans were converted to 11% Convertible Secured Promissory Notes, leaving a remaining balance of $3,801 as of June 30, 2018.