Annual report pursuant to Section 13 and 15(d)

NOTE 8: PROMISSORY NOTE - RELATED PARTY

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NOTE 8: PROMISSORY NOTE - RELATED PARTY
12 Months Ended
Dec. 31, 2018
Notes  
NOTE 8: PROMISSORY NOTE - RELATED PARTY

NOTE 8: PROMISSORY NOTE - RELATED PARTY

 

On August 8, 2014 the Company entered into a Promissory Note Agreement with CanChew Biotechnologies, LLC (CCB), a related party (the owners of CCB also own a majority of the outstanding shares of the Company), under which it borrowed $1,000,000 to fund working capital. The original loan was a demand note bearing interest at the rate of 7% per annum, which amount, along with principal, was payable upon demand. The demand note was amended effective January 1, 2015 to reduce the annual interest rate to 3%. All other terms and conditions shall remain in full force and effect. The Company is in discussions to have the demand note modified or exchanged for a longer term, fixed maturity note.

 

The following table summarizes promissory note payable as of December 31, 2018 and 2017:

 

 

 

December 31,

 

December 31,

 

 

2018

 

2017

Promissory note payable, due on demand, interest at 3%.

$

880,000

$

880,000

Accrued interest

 

140,526

 

114,126

 

$

1,020,526

$

994,126

 

For the year ended December 31, 2018 and 2017 the Company recognized interest expense of $26,400 and $25,562, respectively.