RELATED PARTY NOTE PAYABLE

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

RELATED PARTY NOTE PAYABLE

NOTE 4 – RELATED PARTY NOTE PAYABLE

On December 31, 2014, the Company entered into a Loan Agreement and associated Promissory Note (the “Loan Agreement”) with Bourbon Brothers #14, LLC (“BB14”) which provides for an unsecured term loan in the aggregate original principal amount of $1,250,000 (the “Loan”). The Company received net proceeds of $1,197,714 after loan closing fees. BB14 is a related party entity, controlled by certain shareholders of the Company. The Company is to pay interest on the Loan at the greater of 9.5% or 6.25% per annum plus the prime rate announced by the Wall Street Journal. In addition, the Company is to pay a monthly loan servicing fee in the amount of 1% of the principal balance of the Loan. The entire principal balance of the Loan, plus any accrued and unpaid interest, is due on December 29, 2016.

The related party interest expense on this loan for the three and six months ended June 30, 2016 and 2015 was $33,300, $66,650, $32,500 and $65,000, respectively.  The Company paid $100,000 towards prepayment of this Loan to BB14 at December 31, 2015. During the six months ended June 30, 2016, the Company prepaid an additional $400,000 towards this Loan then recaptured $100,000 for this repayment for a net prepayment during the period of $300,000.