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Note 15 - Related Party Loans
3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
Note 15 - Related Party Loans

NOTE 15 – RELATED PARTY LOANS

 

On January 3, 2018, the Company entered into two separate promissory notes in the amount of $125,000 each for an advance of $250,000 by Mr. Tom O’Leary and Mr. Neil Leibman, Board members (Mr. Leibman is also an executive officer) for purposes of short-term financing.  The promissory notes accrue interest at the rate of 5% per annum based upon 365 days a year with a maturity date of July 3, 2018.  As of March 31, 2018, the outstanding balance of the two promissory notes is $250,000.  During the quarter ended March 31, 2018, the Company paid Mr. O’Leary and Mr. Leibman a combined amount of $3,014 in interest on the notes.

 

On January 8, 2018, the Company entered into a promissory note in the amount of $373,000 for an advance by Mr. Leibman for purposes of short-term financing.    The promissory note accrues interest at a rate of 5% per annum based upon 365 days in a year and has a maturity date of July 8, 2018. On March 6, 2018, $200,000 was paid back to Mr. Leibman with a remaining balance of $173,000 owed by the Company as of March 31, 2018.  For the quarter ended March 31, 2018, the Company paid interest to Mr. Leibman in the amount of $3,529.

 

On January 8, 2018, the Company entered into a promissory note with Pinnacle Power, LLC (“Pinnacle”), in the amount of $80,000 for purposes of short-term financing.  Mr. O’Leary and Mr. Leibman hold partnership interest in Pinnacle and are Board members of the Company.  The promissory note accrues interest at a rate of 5% per annum based upon 365 days a year and has a maturity date of July 8, 2019.  On February 22, 2018, $40,000 was repaid to Pinnacle and on March 6, 2018, $40,000 was repaid to Pinnacle.  As of March 31, 2018, the balance of the Pinnacle loan was $0.   During the quarter ended March 31, 2018, the Company paid Pinnacle $558 in interest.