NOTE 6 – NOTES PAYABLE AND OTHER AMOUNTS DUE TO RELATED PARTY

Amounts due to related parties as of March 31, 2018 and December 31, 2017 were comprised of the following:

	March 31,		December 31,
	2018		2017
Due to related party:			(audited)
Deferred compensation, Dr. Michael Dent	$	300,600	$	300,600
Accrued interest payable to Dr. Michael Dent		79,079		63,245
Total due to related party		379,679		363,845

Notes payable to related party:
Notes payable to Dr. Michael Dent, current portion		603,500		553,550
Notes payable to Dr. Michael Dent, long term portion		57,421		---
Total notes payable to related party	$	660,921	$	917,395

Notes Payable to Dr. Michael Dent

Prior to August 2014, NWC was owned and controlled by the Company’s Chief Executive Officer, Dr. Michael Dent (“DMD”). DMD first provided an up to $175,000 unsecured note payable to the Company with a 0% interest rate. During 2013 the limit on the unsecured Note Payable was increased up to $500,000 and during 2014 it was increased to $750,000 with a maturity date of December 31, 2017. During January 2017, the note was again amended to extend the maturity date until December 31, 2018, to accrue interest on outstanding balances after January 1, 2017 at a rate of 10% per annum, and to fix interest accrued on balances between January 1, 2015 and December 31, 2016 at an amount equal to $22,108 (the “$750k DMD Note”). All principal and interest is due at maturity of the $750k DMD Note. Interest accrued on the $750k DMD Note as of March 31, 2018 and December 31, 2017 and 2016 was $49,660 and $43,963, respectively.

Notes payable to Dr. Michael Dent as of March 31, 2018 were as follows:

Inception Date	Maturity Date	Borrower	Interest Rate	Amount
January 12, 2017	January 13, 2019	HLYK	10%	$	38,369
January 18, 2017	January 19, 2019	HLYK	10%		21,925
January 24, 2017	January 15, 2019	HLYK	10%		54,813
February 9, 2017	February 10, 2019	HLYK	10%		32,592
April 20, 2017	April 21, 2019	HLYK	10%		10,669
June 15, 2017	June 16, 2019	HLYK	10%		34,053
August 17, 2017	August 18, 2018	HLYK	10%		20,000
August 24, 2017	August 25, 2018	HLYK	10%		37,500
September 7, 2017	September 8, 2018	HLYK	10%		35,000
September 21, 2017	September 22, 2018	HLYK	10%		26,500
September 29, 2017	September 30, 2018	HLYK	10%		12,000
December 21, 2017	December 22, 2018	HLYK	10%		14,000
January 8, 2018	January 9, 2019	HLYK	10%		75,000
January 11, 2018	January 12, 2019	HLYK	10%		9,000
January 26, 2018	January 27, 2019	HLYK	10%		17,450
January 3, 2014	December 31, 2018	NWC	10%		222,050

				$	660,921

Interest accrued on the above unsecured promissory notes as of March 31, 2018 and December 31, 2017 was $29,449 and $19,350, respectively.

On February 12, 2018, the Company issued a warrant to purchase 6,678,462 shares of common stock to DMD as an inducement to (i) extend the maturity dates of up to $439,450 loaned by Dr. Dent to the Company in 2017 and 2018 in the form of unsecured promissory notes, including $75,000 loaned from Dr. Dent to the Company in January 2018 to allow the Company to retire an existing convertible promissory note payable to Power-up Lending Group Ltd. before such convertible promissory note became eligible for conversion, and (ii) provide continued loans to the Company. The warrant is immediately exercisable at an exercise price of $0.065 per share, subject to adjustment, and expires five years after the date of issuance. The fair value of the warrants was calculated using the Black-Scholes pricing model at $337,466, with the following assumptions: risk-free interest rate of 2.56%, expected life of 5 years, volatility of 268.90%, and expected dividend yield of zero. On March 28, 2012, DMD agreed to extend the maturity dates of promissory notes with an aggregate face value of $177,500, which were originally scheduled to mature before June 30, 2018, by one year from the original maturity date. Because the fair value of the warrants was greater than 10% of the present value of the remaining cash flows under the modified promissory notes, the transaction was treated as a debt extinguishment and reissuance of new debt instruments pursuant to the guidance of ASC 470-50 “Debt – Modifications and Extinguishments” (“ASC 470-50”). A loss on debt extinguishment was recorded in the amount of $348,938, equal to the fair value of the warrants of $337,466, plus the excess of $11,472 of the fair value of the reissued debt instruments over the carrying value of the existing debt instruments.

MedOffice Direct

During 2017, the Company entered into an agreement with MedOffice Direct (“MOD”), a company majority-owned by the Company’s CEO and largest shareholder, Dr. Michael Dent, pursuant to which the Company will pay rent to MOD in the amount of $2,040 per month for office space in MOD’s facility used by the Company and its employees for the period from January 1, 2017 through July 31, 2018. During the three months ended March 31, 2018 and 2017, the Company recognized rent expense to MOD in the amount of $6,120 and $6,120, respectively, pursuant to this agreement and had prepaid an additional $12,538 toward future rent as of March 31, 2018.

During 2017, the Company entered into a separate Marketing Agreement with MOD pursuant to which MOD agreed to market the HealthLynked Network to its physician practice clients, in exchange for a semi-annual fee of $25,000. During the three months ended March 31, 2018 and 2017, the Company recognized general and administrative expense in the amount of $12,500 and $-0-, respectively, pursuant to this agreement.