Quarterly report pursuant to Section 13 or 15(d)

Related Party Notes Payable (Tables)

v3.20.2
Related Party Notes Payable (Tables)
6 Months Ended
Jun. 30, 2020
Related Party Transactions [Abstract]  
Schedule of Related Party Notes Payable

Related party notes payable consisted of the following as of:

 

    June 30, 2020
(Unaudited)
    December 31, 2019  
             
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     $ 1,000,000  
                 
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       75,000  
                 
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.     500,000       500,000  
                 
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.     25,000       -  
                 
Total related party notes payable     1,600,000       1,575,000  
                 
Less current portion     (600,000 )     (575,000 )
                 
Long term related party notes payable   $ 1,000,000     $ 1,000,000  
Schedule of Related Party Future Maturities of Notes Payable

Future maturities of these related party notes payable are as follows as of June 30:

 

2021   600,000  
2022     1,000,000  
    $ 1,600,000