NOTE

– LOANS PAYABLE

During the prior fiscal year, the Company entered into a loan in order to acquire a vehicle. The loan is repayable over

five

years at

$541

per month, is secured by the vehicle and bears interest at

0%.

Management determined that the fair value of the loan was

not

significantly different from its face value and therefore

discount has been recorded. During the

nine

months ended

December 31, 2019,

the Company sold the vehicle for the remaining balance on the loan resulting in a balance due of

as of

December 31, 2019.

July 27, 2018,

the Company entered into a loan agreement to borrow

$100,000.

The loan carries an interest rate of

24.37%,

is payable over

twelve

months and due on

July 27, 2019.

There was

and

$65,464

of principal due as of

December 31, 2019

and

March 31, 2019,

respectively.

During the year ended

March 31, 2019,

the Company entered into a loan in order to acquire equipment. The loan is repayable over

twelve

months at

$954

per month, is secured by the equipment and bears interest at

0%.

Management determined that the fair value of the loan was

not

significantly different from its face value and therefore

discount has been recorded. There was

and

$10,497

due as of

December 31, 2019

and

March 31, 2019,

all of which was current.

On various dates during the

nine

months ended

December 31, 2019,

the Company entered into

five

separate verbal loan agreements to purchase equipment totaling

$501,077,

each with

stated interest rate. The Company recorded the loans using an imputed interest rate of

6.59%

per annum, equal to the interest rate associated with other recent borrowings on assets.

●

The

first

five

loans was for equipment valued at

$270,604

and required

$27,990

down with

six

monthly payments of

$5,000

and a balloon payment of

$221,910

unless otherwise negotiated prior to maturity. During the

three

months ended

December 31, 2019,

the Company renegotiated the note to require monthly payments of

$5,000

until paid in full, removing the balloon payment.

●

The

second

five

loans was for equipment valued at

$24,163

and required

$2,500

down with

six

monthly payments of

$1,000

and a balloon payment of

$16,395

unless otherwise negotiated prior to maturity. This loan was repaid in full during the period ended

December 31, 2019.

●

The

third

of the of

five

loans was for equipment valued at

$36,884

and requires monthly payments of

$5,000

until paid in full unless otherwise negotiated prior to maturity. This loan was repaid in full during the period ended

December 31, 2019.

●

The

fourth

five

loans was for equipment valued at

$137,040

and required

$5,000

down with

monthly payments of

$1,000

and a balloon payment of

$126,040

unless otherwise negotiated prior to maturity. During the

three

months ended

December 31, 2019,

the Company renegotiated the note to require monthly payments of

$5,000

until paid in full, removing the balloon payment.

●

The

fifth

five

loans was for equipment valued at

$32,386

and required

$6,477

down with

monthly payments of

$6,477

and

one

payment of

$6,478

unless otherwise negotiated prior to maturity. This loan was repaid in full during the period ended

December 31, 2019.

June 1, 2019,

the Company entered into a loan to borrow

$34,222

to purchase a vehicle. As part of the agreement, the Company traded in its existing vehicle for total consideration of

$19,464

resulting in a net loss recorded on the asset of

$1,751.

The loan carries interest at a rate of

6.59%

per annum and matures in

September 2025.

As of

December 31, 2019,

there was a total of

$31,977

due of which

$4,720

was current.

Total loans outstanding at

December 31, 2019

were

$376,927

of which

$349,670

was current and

$27,257

was long term.