Notes Payable

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Notes Payable

7. NOTES PAYABLE

The following table summarizes the components of our short-term borrowings:

	December 31,
	2018		2017
(a)    Term loans	$	200,000	$	200,000
(b)    Line of credit		65,000		-
Total	$	265,000	$	200,000

(a) Term loans

In 2015, the Company entered into an unsecured term loan agreement with a third party for an aggregate principal balance of $200,000 at an interest rate of 14% per annum. The term loan became due on April 14, 2017. The principal balance outstanding on the note as of December 31, 2018 and December 31, 2017 was $200,000 and is past due, and $5,655 of accrued interest has been paid down in 2018.

(b) Line of Credit

The Company obtained a line of credit agreement with an accredited investor of $5,000,000 during 2018. There were three borrowings against the line as of December 31, 2018 for aggregate borrowings of $65,000. The line bears interest of 17%. The line is based upon GTXO providing the investor with purchase orders and use of proceeds, including production of goods schedules and loan repayment timelines. These loans/drawdowns are specifically for product, inventory and/or purchase order financing.

Upon completion of the terms of the Line of Credit, GTX Corp. will issue to the investor 7,500,000 shares of GTXO common stock or $75,000 of GTXO common stock, whichever is greater.

As of December 31, 2018 the Company had received $65,000 in advances.