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Note 5 - Long Term Debt
6 Months Ended
Jun. 30, 2017
Notes  
Note 5 - Long Term Debt

NOTE 5 – LONG TERM DEBT

 

There are $181,500 in convertible promissory notes due in May 2019 as described in NOTE 4 – SHORT TERM DEBT.

 

Related Party Promissory Note

 

In June 2017, Trxade Group, Inc. (the “Company” or “Trxade”) satisfied an outstanding promissory note, dated May 8, 2016, as amended, in the principal amount of $250,000 (the “NPR Note”), made by between the Company and NPR INVESTMENT GROUP, LLC (the “Lender”). The NPR Note included a personal guarantee from Suren Ajjarapu and Prashant Patel, who both serve on the Board of Directors of the Company and are controlling stockholders of the Company. Further, Mr. Ajjarapu is the CEO and President of the Company and Mr. Patel is Vice Chairman and Executive Director of Strategy.

 

In connection with the foregoing satisfaction of the NPR Note above, the Company received funds in June 2017 and entered into a promissory note agreement on July 1, 2017, whereby the Company borrowed $100,000 and $80,000 from Sansur Associates, LLC, a limited liability company controlled by Mr. Ajjarapu, and Mr. Patel, respectively (the “Promissory Notes”). The term of each of these Notes is three years and they each bear interest at 6%, which is payable annually.

 

The note due to Mr. Patel is $122,552. It comprises $80,000 for the NPR note, $17,280 for existing promissory note and $25,272 assumption of credit card obligation related to business expenses of the company.

 

Short-Term Debt Classified as Related Party Long-Term Debt

 

The note balance of $180,000 has been classified as long-term debt at June 30, 2017 because the July 1, 2017 notes are due more than one year after the balance cheet date.