Quarterly report pursuant to Section 13 or 15(d)

Notes Payable - Related Party

v3.20.2
Notes Payable - Related Party
6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
Notes Payable - Related Party
7 NOTES PAYABLE – RELATED PARTY

 

In December 2018, the Company executed a promissory note payable agreement with SMDMM Funding, LLC (“SMDMM”), an entity that is owned by the Company’s Chief Executive Officer. The promissory note was for a principal sum up to $1.0 million at an annual interest rate of 6%, due on December 27, 2021. During the six months ended June 30, 2020, the Company did not withdraw any net advances on the note.

 

In August 2019, the Company executed a promissory note payable agreement with SMDMM. The promissory note was for a principal sum up to $217,000 at an annual interest rate of 6%, due on August 15, 2022. During the six months ended June 30, 2020, the Company did not withdraw any net advances on the note.

 

During the fourth quarter 2019, the Company executed a promissory note payable agreement with SMDMM. The promissory note was for a principal sum up to $883,000 at an annual interest rate of 15%, due on November 21, 2022. During the six months ended June 30, 2020, the Company did not withdraw any net advances on the note.

 

During the six months ended June 30, 2020, the Company made accrued interest payments of $20,000. The outstanding principal balance under the promissory notes due to SMDMM was $2,205,440 at June 30, 2020 and December 31, 2019. Accrued interest owed to SMDMM was $150,369 and $64,741 at June 30, 2020 and December 31, 2019, respectively.

 

During the six months ended June 30, 2020, the Company executed a series of promissory notes with AN Holdings, LLC, an entity owned by the Company’s President. The promissory notes were for an aggregate principal sum of $200,000 at an annual interest rate of 15%, due on demand. The Company repaid $100,000. As of June 30, 2020, the outstanding balance on the notes was $100,000.