| Schedule of Related Party Notes Payable |
Related party notes payable consisted
of the following as of:
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June 30, 2020
(Unaudited) |
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December 31, 2019 |
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| Inventory financing. On January 11, 2019, the Company entered into a $1,000,000 revolving inventory financing facility with a lender that is also a current stockholder that beneficially owns more than 5% of the Company’s common stock. Use of proceeds from this facility is limited to the purchase of inventory, including raw materials, intermediates, and finished goods, unless otherwise waived by the lender. This facility accrues interest at the rate of 12% per annum payable monthly, is unsecured, and matures in three years from origination. This facility requires monthly interest payments. |
|
$ |
1,000,000 |
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|
$ |
1,000,000 |
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|
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| Officer loan. On June 26, 2019, the Company borrowed $75,000 from the Chief Executive Officer of the Company. This note accrues interest at the rate of 4.5% per annum, is unsecured, and was originally due August 26, 2019, but the maturity date was extended to June 30, 2021. |
|
|
75,000 |
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75,000 |
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| Promissory note 2019-01. On May 20, 2019, the Company entered into a $400,000 promissory note with a lender that is also a current stockholder that beneficially owns more than 5% of the Company’s common stock. On July 10, 2019, this note was amended to increase the principal sum by an additional $100,000. This note accrues interest at the rate of 12% per annum, is unsecured, and was originally due August 20, 2019, but the maturity date was extended to June 30, 2021. The principal and accrued interest are due on the maturity date. |
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500,000 |
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500,000 |
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| Promissory note 2012-01. On June 29, 2019, the Company entered into a $25,000 promissory note with a lender that is also a current stockholder that beneficially owns more than 5% of the Company’s common stock. This note accrues interest at the rate of 12% per annum, is unsecured, and matures on September 30, 2020. The principal and accrued interest are due on the maturity date. |
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25,000 |
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- |
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| Total related party notes payable |
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|
1,600,000 |
|
|
|
1,575,000 |
|
| |
|
|
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|
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| Less current portion |
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(600,000 |
) |
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|
(575,000 |
) |
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|
|
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| Long term related party notes payable |
|
$ |
1,000,000 |
|
|
$ |
1,000,000 |
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