Notes Payable

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Notes Payable

On August 26, 2015, the Company entered into a Business Promissory Note and Security Agreement with Bank of Lake Mills for the principal sum of $200,000 and an interest rate of 22%. The Note is for a term of six months with a weekly repayment schedule ending February 22, 2016. The Note includes standard representations and warranties. The Note is secured by certain assets of the Company as well as a personal guarantee by chief executive officer Alex Minicucci. The total repayment amount including interest and principal is $244,637 to be paid pro-rata weekly ending February 22, 2016.  For the three and nine months ended September 30, 2015, we recorded interest expense related to the note of $8,584.  For the nine months ended September 30, 2015, we have paid approximately $37,600 in principal repayments related to the Note.