| Advances from Shareholders |
Note 13 – Advances from Shareholders
Advances from shareholders consist of the following
at December 31, 2019 and 2018, respectively:
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December 31, |
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December 31, |
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2019 |
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2018 |
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On various dates between May 3, 2018 and November
23, 2018, our CEO advanced short-term unsecured demand loans, bearing interest at 6% per annum, of an aggregate $514,141 to the
Company, as follows:
$ 10,000 – May 3,
2018
$100,000 – May 3,
2018
$ 82,000 – May 14,
2018
$ 15,000 – May 29,
2018
$ 57,141 – October
25, 2018
$100,000 – October
30, 2018
$ 50,000 – November
9, 2018
$ 50,000 – November
21, 2018
$ 50,000 – November
23, 2018
A total of $207,000 was repaid over various
dates from March of 2019 through May of 2019, and $307,141 was exchanged for the note described below.
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$ |
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$ |
514,141 |
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| On February 13, 2019, a total of $307,141 of the advances from our CEO received from October 25, 2018 to November 23, 2018, as shown above, were exchanged for an amended and restated promissory note in the principal amount of $307,141 (the “Amended Note”). The Amended Note bore interest at 6% and was payable upon the earlier of (i) a public or private offering of our equity securities, resulting in gross proceeds of at least $5,000,000, or (ii) February 13, 2022. All indebtedness outstanding under the Amended Note, consisting of $307,141 of principal and $13,791 of interest, was repaid in full during September 2019, with $200,000 of such principal paid by the issuance of 400,000 shares of common stock as described in Note 4 above. |
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| Total advances from shareholders |
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$ |
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514,141 |
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The Company recorded interest expense in the
amount of $16,053 and $10,738 for the year ended December 31, 2019 and the period from inception (March 27, 2018) to December
31, 2018, respectively.
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