Secured Promissory Notes - Related Party

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Secured Promissory Notes - Related Party

NOTE 4 – SECURED PROMISSORY NOTES - RELATED PARTY.

Related Party notes payable consists of the following at periods ended:

	As of September 30, 2018		As of December 31, 2017
Secured Demand Promissory Note (provided by a related party) bearing interest of 4% per annum.	$	1,984,360	$	1,969,121
Secured Demand Promissory Note (provided by a related party) bearing interest of 12% per annum.		618,043		588,651
Secured Demand Promissory Note - $77,930 in February 16, 2018 bearing interest of 4% per annum, payable on demand and secured by the blending site property located at 1776 Allanport, Road, Thorold, Ontario CA.		79,355		0
Secured Demand Promissory Note - $75,000, July 11, 2018 bearing interest of 4% per annum, payable on demand and secured by the blending site property located at 1776 Allanport, Road, Thorold, Ontario CA.		75,527		0
Secured Demand Promissory Note - $100,000 in July 31, 2018 bearing interest of 4% per annum, payable on demand and secured by the blending site property located at 1776 Allanport, Road, Thorold, Ontario CA.		100,637		0
Secured Promissory Notes (provided by a related party -$1,000,000 in November 19, 2014) bearing interest of 12% per annum compounded annually, together with a five-year warrant to purchase up to one million shares of the Company’s common stock at an exercise price of $0.12 per share, and payable upon maturity in 2019 and secured by a security interest in substantially all of the assets of the Company and its subsidiaries.		1,547,481		1,413,186
Secured Promissory Notes (provided by a related party - $1,000,000 in August 29, 2013 and $2,000,000 in September 30, 2013) bearing interest of 12% per annum compounded annually, together with a five-year warrant to purchase up to three million shares of the Company’s common stock at an exercise price of $0.54 per share and payable upon maturity in 2018 and secured by a security interest in substantially all of the assets of the Company and its subsidiaries.		5,304,648		4,746,490
Secured Promissory Note -$100,000 in August 24, 2016 bearing interest of 12% per annum compounded annually, together with a five-year warrant to purchase up to one million shares of the Company’s common stock at an exercise price of $0.12 per share, and payable upon maturity in 2021 and secured by a security interest in substantially all of the assets of the Company and its subsidiaries.		125,814		115,276
Secured Promissory Note -$400,000 in October 18, 2016 bearing interest of 12% per annum compounded annually, together with a five-year warrant to purchase up to one million shares of the Company’s common stock at an exercise price of $0.12 per share, and payable upon maturity in 2021 and secured by a security interest in substantially all of the assets of the Company and its subsidiaries.		486,872		443,757
Total		10,322,737		9,276,481
Short Term Demand Notes Payable	$	2,857,922	$	2,557,772
Short Term Secured promissory notes – related party	$	5,304,648	$	4,746,490
Long Term Secured promissory notes – related party	$	2,160,167	$	1,972,219
Short Term and Long Term promissory notes – related party	$	7,464,815	$	6,718,709

Continuity of Secured Promissory Notes – Related Party	As of September 30, 2018			As of December 31, 2017
Face value of November 19, 2014 secured note payable	$	1,000,000		$	1,000,000
Face value of August 29, 2013 secured note payable		1,000,000			1,000,000
Face value of September 30, 2013 secured note payable		2,000,000			2,000,000
Face value of August 25, 2016 secured note payable		100,000			100,000
Face value of October 18, 2016 secured note payable		400,000			400,000
Total face value of promissory notes payable		4,500,000			4,500,000
Discount on November 19, 2014 secured notes payable (1,000,000 warrants)		(58,082	)		(58,082	)
Discount on August 29, 2013 secured note payable (1,000,000 warrants)		(310,200	)		(310,200	)
Discount on September 30, 2013 secured note payable (2,000,000 warrants)		(600,400	)		(600,400	)
Discount on August 24, 2016 secured notes payable (100,000 warrants)		(2,000	)		(2,000	)
Discount on October 18, 2016 secured notes payable (500,000 warrants)		(20,000	)		(20,000	)
Accretion of discount on secured notes payable ($4,000,000 secured note payable)		958,612			818,480
Accretion of discount on secured notes payable ($500,000 secured note payable)		8,500			5,200
Interest on secured notes payable($4,000,000 secured note payable)		2,862,200			2,309,878
Interest on secured notes payable($500,000 secured note payable)		126,185			75,833
Carrying value of Short Term and Long Term Secured Promissory Notes	$	7,464,815		$	6,718,709

The following annual payments of principal and interest are required over the next five years in respect to these short term and long term related party secured notes payables:                

Years Ending December 31,	Annual Payments
2018	$	8,184,040
2019		1,547,481
2020		-
2021		591,216
Total	$	10,322,737