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Note 14 - Related Party Transactions
6 Months Ended
Jun. 30, 2019
Disclosure Text Block [Abstract]  
Note 14 - Related Party Transactions

NOTE 14 – RELATED PARTY TRANSACTIONS

 

The Company is leasing 4200 square feet of property from Hong So Mac, the father of Sam Mac, one of the principal shareholders (see Note 6). Total rent payments of $10,500 were made for the three months ended March 31, 2019. No rent payments were made since March 31, 2019 due to the fire damage (see Note 6).

 

On December 31, 2018, the Company issued notes payable of $958,467 to several of its principal shareholders, members of management and affiliated companies. The notes have been classified as notes payable related party. The notes bear interest at 8% and carry either a $5,000 or $1,000 late fee if not paid in full by March 31, 2019, the maturity date. A few of the notes had due dates on March 28, 2019. The interest increases to 12% for unpaid balances after the maturity date. The notes are unsecured except for one note for $261,650 which is secured by equipment that was purchased with the funds from the note. Most of the remaining balance is payable to Tran Millenium, a company owned by Eric Tran, for consulting related to the formation, strategy, permitting, licensing, compliance and construction design for the new entities formed during 2018. As of March 31, 2019, the Company had paid back $135,000 of the notes payable related party but was in default on the rest. As of June 30, 2019, the Company had notes payable related parties of $895,943, which includes interest and penalties of $72,476.

 

As of June 30, 2019 and December 31, 2018, the Company had related party payables of $1,185,450 and $106,093, respectively, for reimbursable expenses.