Note Payable

9 Months Ended

Sep. 30, 2020

Notes

Note Payable

NOTE 5 – Notes Payable

The Company’s debt consists of the following:

	September 30, 2020	December 31, 2019
Note payable, 12-14% interest, interest and principal due December 6, 2020 through August 12, 2021, unsecured (1)	$370,000	$350,000
Total due	370,000	350,000
Current Portion	370,000	350,000
Long-term portion	$         -	$         -

(1)One note for $50,000 includes as an additional return on the debt a 3% interest in the Gross Crop Yield from the Company’s hemp crop in McDermitt, NV.  No accrual has been made for this interest due to failure of crop and no proceeds received from a Gross Crop Yield.  This note was purchased by another note holder and the additional return from a Gross Crop Yield was eliminated. 

(2)All notes that have become due to the date of this report have been extended to a future due date, as per above date ranges. 

The Company has incurred an interest expense of $33,539 and $5,184 during the nine months ended September 30, 2020 and 2019.  The Company has interest accrued on the above notes in the amount of $29,819 and $10,779 at September 30, 2020 and December 31, 2019.

NOTE 6 – Notes Payable-Related Party

The Company’s related party debt consists of the following:

	September 30, 2020	December 31, 2019
Notes payable, 12% interest, interest and principal due November 30, 2020 through May 21, 2021, unsecured	$43,306	$34,557
Total due	43,306	34,557
Current Portion	43,306	34,557
Long-term portion	$         -	$         -

(1) All notes that have become due to the date of this report have been extended to a future due date as per the date range listed above. 

During the nine months ended September 30, 2020 and 2019, the Company borrowed $43,306 (net of a $10,000 payback on August 30, 2020) and $30,557, respectively, from our current President and director, Vincent C. Lombardi, in order to cover expenses being incurred in connection with the Company’s commercial hemp farming activities and general and administrative expenses as detailed below.  A repayment of $10,000 on these related party notes was made on August 30, 2020 and none during the nine months ended September 30, 2019.

The Company has incurred an interest expense of $3,602 and $88 during the nine months ended September 30, 2020 and 2019.  The Company has interest accrued on the above notes in the amount of $4,299 and $569 at September 30, 2020 and December 31, 2019.