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NOTE C - CONVERTIBLE NOTES PAYABLE RELATED PARTY
12 Months Ended
Dec. 31, 2018
Notes  
NOTE C - CONVERTIBLE NOTES PAYABLE RELATED PARTY (1)The note holder had the right to convert the note, in its entirety or in part, into common stock of the Company at the rate of $1.00 per share.  During the years 2018 and 2017, the Company made principal payments totaling $116,592 and $28,374, respectively. The secured convertible promissory note was paid off on February 1, 2018.    The Company analyzed the conversion option for derivative accounting and beneficial conversion features consideration under ASC 815-15 “Derivatives and Hedging” and ASC 470-20 “Convertible Securities with Beneficial Conversion Features” and noted none.

 

(2)  The note holder has the right to convert the note, in its entirety or in part, into common stock of the Company at the rate of $1.00 per share.  During the years 2018 and 2017, the Company made principal payments of $5,354 and $5,044, respectively. The secured convertible promissory note had a balance of $27,888 at December 31, 2018, of which $5,685 is short-term and $22,203 is long-term. 

 

This secured convertible promissory note is secured by certain equipment of the Company. Upon payment of the balance due on this secured convertible promissory note title of the equipment will be transferred to the Company free and clear of all liens and encumbrances.

 

The Company analyzed the conversion option for derivative accounting and beneficial conversion features consideration under ASC 815-15 “Derivatives and Hedging” and ASC 470-20 “Convertible Securities with Beneficial Conversion Features” and noted none.

 

Future maturities of notes payable at December 31, 2018 are $27,888.