NOTE 8. ACQUISITION RELATED SHORT AND LONG TERM BORROWINGS

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

8. ACQUISITION RELATED SHORT AND LONG TERM BORROWINGS

NOTE 8.  ACQUISITION RELATED SHORT AND LONG TERM BORROWINGS

Short-term and Long-term borrowings, acquisition related, consist of the following:	September 30,		December 31,
Short term debt; acquisition related;	2019		2018
Short term note – Jean Mork Bredeson Cash deficit holdback		210,000		-
Short Term note – Jean Mork Bredeson Purchase allocation		1,361,840		-
Total short-term debt, acquisition related		1,571,840		-
Long term debt; acquisition related;
Promissory Note – Jean Mork Bredeson, interest rate of 5.5%, due 2/28/2022		2,100,000		-
Total short-term and long-term borrowings, before debt discount		3,671,840		-
Less debt discount		-		-
Total short-term and long-term borrowings, acquisition related	$	3,671,840	$	-

Effective February 28, 2019 as a component of the closing of the business combination between Beyond Commerce, Inc. and Service 800, Jean Mork Bredeson, Founder and President of Service 800, the Company issued a $2,100,000 three year 5.5% promissory note. Interest only payments are required during the first year of the note. The $2,100,000 promissory note is personally guaranteed by George Pursglove which in turn will be Geordan Pursglove since the passing of the former CEO.

As a component of the Service 800 transaction, in lieu of the entire cash payment of $2,100,000 being made to Ms. Bredeson, a $210,000 amount was held out until May 30, 2019 and continues to be outstanding. This note does not carry any interest obligations. Also, as all cash and accounts receivables at the effective date of the closing were to be retained by Ms. Bredeson this allocation of cash is to be distributed quarterly on a non interest basis as true-ups are derived, which amounted to $1,361,840 during the first three quarters.