| Advances from Shareholders |
Note
10 – Advances from Shareholders
Advances
from shareholders consist of the following at June 30, 2019 and December 31, 2018, respectively:
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June
30, 2019 |
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December
31, 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 bears interest at 6% and is payable upon the earlier of (i) a public or private offering of
our equity securities, resulting in gross proceeds of at least $5,000,000, or (ii) February 13, 2022. |
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307,141 |
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| Total
advances from shareholders |
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$ |
307,141 |
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$ |
514,141 |
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The
Company recorded interest expense in the amount of $12,457 for the six months ended June 30, 2019.
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