XML 48 R12.htm IDEA: XBRL DOCUMENT v3.19.2
Debt
6 Months Ended
Jun. 30, 2019
Debt  
Note 6. Debt

Due to third parties, interest bearing

 

The Company has borrowed money from third parties to fund operations. These third parties consist of the Chief Executive and Financial Officer’s friends and the spouse of a former board member of the Company. These advances have an annual interest rate of 6%, are unsecured, and are due on demand. As of June 30, 2019 and December 31, 2018, the Company owed $20,000 and $109,030 to these third parties, respectively. In March 2019, the Company settled $89,030 of the debt owed to some of these third parties and converted the debt into the Company’s common stock (See Note 10 - Equity).

 

Interest expense for the three months ended June 30, 2019 and 2018 for the above loans amounted to $299 and $1,631, respectively.

 

Interest expense for the six months ended June 30, 2019 and 2018 for the above loans amounted to $1,722 and $3,244, respectively.

 

In March 2019, the repayment terms related to the remaining balance of $20,000 were changed by the third party creditor from due on demand to due on March 20, 2024.

 

Due to third parties, non-interest bearing

 

The Company has borrowed money from third parties to fund operations. These third parties consist of the Chief Executive and Financial Officer’s friends and a former board member of the Company. These advances do not bear interest, are unsecured, and are due on demand. As of June 30, 2019 and December 31, 2018, the Company owed $50,000 and $101,666 to these third parties, respectively. In March 2019, the Company settled $32,000 of the debt owed to a third party and converted the debt into the Company’s common stock (See Note 10 - Equity). The Company also repaid $19,666 to a third party during the six months ended June 30, 2019.

 

In March 2019, the repayment terms related to the remaining balance of $50,000 was changed by the third party creditor from due on demand to due on March 20, 2024.