Note 9 – Notes Payable

The notes payable consisted of the following as of October 31, 2015 and July 31, 2015:

	October 31, 2015		July 31, 2015
Note payable (Auto)	$	43,568	$	61,397
Note payable (Primary note)		340,000		50,000
		383,568		111,397
Less current portion		(341,256)		(65,688)
Long-term note payable	$	42,312	$	45,709

The automobile note payable is secured by the Company’s automobile and bears interest at 3.99% per annum with a maturity date of October 9, 2019. The Company’s monthly payment under the automobile note is $1,336 until maturity.

The primary notes payable, which was entered into on May 12, 2015 and August 31, 2015, bears interest at 5% interest per 30 days. The entire principal balances together with accrued interest are due on the maturity date of January 7, 2016.

On October 5, 2015, the Company entered into a promissory note with an investor for a total principal of $100,000. The principal and accrued interest balances are due in 48 payments of $2,625 each to be paid within 12 months. The note grants a continuing security interest in all of the Company’s business equipment, inventory, accounts receivable, general intangibles, intellectual property, licenses, assets and properties of any kind.

On October 9, 2015, the Company entered a business loan with a creditor for a total principal of $150,000. The principal and accrued interest balances are due in 220 payments of $900 each to be paid within 10 months. The note grants a continuing security interest in all of the Company’s business equipment, inventory, accounts receivable, general intangibles, intellectual property, licenses, assets and properties of any kind.