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Short Term Note Payable
3 Months Ended
Mar. 31, 2016
Notes  
Short Term Note Payable

5.  Short Term Note Payable

 

On November 29, 2013, the company issued an unsecured promissory note payable to an individual for $75,000. The note payable bears interest at 10 % per annum and all principal and accrued interest is due on December 1, 2014; the note was extended to July 20, 2015 and further extended to June 30, 2016. Since the term of the note payable is less than 12 months, the entire amount of the principal and accrued interest is presented as a current liability.  A Revised Promissory Note for an additional $25,000 was signed in December 2014 with principal and interest (10%) until March 31, 2016 at which time the interest is increased to 12% for both loans. The new loan has been extended to June 30, 2016. At March 31, 2016 accrued interest on the both note payables is $20,834.

 

The note payable contains language which indicates that both parties have discussed in principal the terms of a conversion provision to the note payable, but only in the event that both parties execute a separate agreement. Until such an agreement is executed. The note payable is not convertible into common stock of the Company.

 

On November 15, 2013 the company issued a note for $67,500 in the purchase of assets for its intangible asset portfolio. This note has no stated interest rate and is payable by July 31, 2014. This agreement was extended to pay the entity $17,500 in the event the company closes any new round of debt and/or equity financing of $200,000 or more. Additionally, the company and the entity agreed to extend the July 31, 2014 date to May 28, 2015 and further extended to June 30, 2016.

 

On May 28, 2014, the company, in a Share Exchange Agreement with Royal Bees Company, Inc. (whereby the surviving entity was Fitweiser Holdings, Inc). took over an unsecured promissory note payable to World Venture for $145,000. The note payable bears interest at 6% per annum and all principal and accrued interest is due on May 28, 2015. Since the term of the note payable is 12 months old, the entire amount of the principal and accrued interest is presented as a current liability. ( See Paragraph 2. Intangible Asset- Short Term Note and Royal Bees Stock regarding an extension of the Note) At March 31, 2016 accrued interest on the note payable is $16,459.

 

In the third quarter, Rudy Campidonica, CEO, paid two invoices to two vendors for legal fees on behalf of the company totaling $5,526.00 with the promise by the company to reimburse him by December 31, 2014; this was done on January 2, 2015.