NOTES AND LOANS PAYABLE TO RELATED PARTIES	3 Months Ended
Mar. 31, 2015
NOTES AND LOANS PAYABLE TO RELATED PARTIES
NOTES AND LOANS PAYABLE TO RELATED PARTIES	NOTE 4 – NOTES AND LOANS PAYABLE TO RELATED PARTIES Capstone Companies, Inc. - Notes Payable to Officers and Directors On May 30, 2007, the Company executed a $575,000 promissory note payable to a director of the Company. This note was amended on July 1, 2009 and again on January 2, 2010. As amended, the note carries an interest rate of 8% per annum. All principal was payable in full, with accrued interest, on January 2, 2014. On November 2, 2007, the Company issued 12,074 shares of its Series B Preferred stock valued at $28,975 as payment towards this loan. The loan grants to the holder a security interest in the accounts receivable of the Company up to the amount of the unpaid principal. On July 12, 2011, Stewart Wallach, the Chief Executive Officer and Director of CHDT and JWTR Holdings, LLC owned by a Director, Jeffrey Postal entered into a Securities and Notes Purchase Agreement with Howard Ullman, the previous Chairman of the Board of CHDT, whereby they would purchase equally all of Mr. Ullman’s notes including the subordinated notes net of any offsets, monies due from Mr. Ullman to the Company. The original terms of all notes would remain the same. On July 12, 2011, this note payable was reassigned by Howard Ullman, equally split between Stewart Wallach, Director, and JWTR Holdings LLC. The note balance of $466,886 was reduced by $47,940 for offsets due by Howard Ullman. The revised loan balance of $418,946 was reassigned equally $209,473 to Stewart Wallach and $209,473 to JWTR Holdings LLC. As amended the note is due on or before July 1, 2015. As of March 31, 2015 the total combined balance due on these two notes was $541,808, which includes accrued interest of $122,862. On July 11, 2008, the Company received a loan from a director in the amount of $250,000. As amended, the note was due on or before April 1, 2014 and carried an interest rate of 8% per annum. As part of this note payable, the Company also issued a warrant to the loan holder to purchase 4,000,000 shares of common stock at a price of $.025 per share. At the date of issuance, the stock price was $.021 per share. The Company accounted for the debt and warrants using APB 14, whereby the proceeds of $250,000 were allocated between the debt and warrants. This resulted in the warrants being valued at $56,375, which was recorded as additional paid-in capital, and a discount on the note of $56,375 being recognized. The discount was amortized over the term of the note (6 months) to interest expense. At December 31, 2008, the discount had been fully amortized resulting in interest expense of $56,375 being recognized. The warrants expired July 10, 2013. At December 31, 2013, the total amount payable on this note was $330,000 including interest of $80,000. This note along with accrued interest was paid in full on April 23, 2014. On March 11, 2010, the Company received a loan from a Director in the amount of $100,000. As amended, the note is due on or before July 1, 2015 and carries an interest rate of 8% per annum. At March 31, 2015, the total amount payable on this note was $140,438 including interest of $40,438. On May 11, 2010, the Company received a loan from a Director in the amount of $75,000. As amended, the note is due on or before July 1, 2015 and carries an interest rate of 8% per annum. The loan grants to the holder a security interest in the accounts receivable of the Company up to the amount of the unpaid principal. At March 31, 2015, the total amount payable on this note was $104,327 including interest of $29,327. On January 15, 2013, the Company received a loan in the amount of $250,000 from Stewart Wallach, the Chief Executive Officer and Director of Capstone Companies, Inc. The loan carries an interest rate of 8% per annum. This loan was amended and the due date has been extended until July 1, 2015. This loan grants to the holder a security interest in the accounts receivable of the Company up to the amount of the unpaid principal. At March 31, 2015, the total amount payable on this note was $294,110 including interest of $44,110. On January 15, 2013, the Company received a loan in the amount of $250,000 from a Director of Capstone Companies, Inc. The loan carries an interest rate of 8% per annum. This loan was amended and the due date has been extended until July 1, 2015. This loan grants to the holder a security interest in the accounts receivable of the Company up to the amount of the unpaid principal. At March 31, 2015, the total amount payable on this note was $294,110 including interest of $44,110. Purchase Order Assignment- Funding Agreements On June 14, 2014, Capstone Industries, Inc. received a $125,000 loan from George Wolf, a consultant. This loan was due on or before December 31, 2014 and carried an interest rate of 1.0% simple interest per month. The loan was paid in full as of December 31, 2014. On December 11, 2013, Capstone Industries, Inc. received $620,000 against a note from Jeffrey Postal. The note was due on or before July 2, 2014, and carried an interest rate of 1.0% simple interest per month. As of December 31, 2013, the total amount due under this note was $624,077 including accrued interest of $4,077. This note was paid in full during the quarter ended March 31, 2014. On June 9, 2014, Capstone Industries, Inc. received $825,000 against two notes from Jeffrey Postal. The notes are due on or before December 31, 2014, and carried an interest rate of 1.0% simple interest per month. As of December 31, 2014, these notes were paid in full. On February 9, 2015, Capstone Industries, Inc. received $200,000 against a note from Jeffrey Postal. The note is due on or before December 31, 2015, and carries an interest rate of 1.0% simple interest per month. As of March 31, 2015, the total amount due under this note was $203,288 including accrued interest of $3,288. Working Capital Loan Agreements On April 1, 2012, the Company signed a working capital loan agreement with Postal Capital Funding, LLC (“PCF”), a private capital funding company owned by Jeffrey Postal and James McClinton, the Company’s Chief Financial Officer. Pursuant to the agreement, the Company may borrow up to a maximum of $1,000,000 of revolving credit from PCF. Amounts borrowed carry an interest rate of 8%. As amended, this loan is due on or before July 1, 2015. As of March 31, 2015, the loan balance under this agreement was $593,290 including interest of $95,290. Notes and Loans Payable to Related Parties – Maturities The total amount payable to officers, directors and related parties as of March 31, 2015, was $2,171,371 including accrued interest of $379,425. The notes and loan payable to related parties mature during 2015.

NOTES AND LOANS PAYABLE TO RELATED PARTIES

3 Months Ended

Mar. 31, 2015

NOTES AND LOANS PAYABLE TO RELATED PARTIES

NOTES AND LOANS PAYABLE TO RELATED PARTIES

NOTE 4 – NOTES AND LOANS PAYABLE TO RELATED PARTIES

Capstone Companies, Inc. - Notes Payable to Officers and Directors

On May 30, 2007, the Company executed a $575,000 promissory note payable to a director of the Company. This note was amended on July 1, 2009 and again on January 2, 2010. As amended, the note carries an interest rate of 8% per annum. All principal was payable in full, with accrued interest, on January 2, 2014. On November 2, 2007, the Company issued 12,074 shares of its Series B Preferred stock valued at $28,975 as payment towards this loan. The loan grants to the holder a security interest in the accounts receivable of the Company up to the amount of the unpaid principal. On July 12, 2011, Stewart Wallach, the Chief Executive Officer and Director of CHDT and JWTR Holdings, LLC owned by a Director, Jeffrey Postal entered into a Securities and Notes Purchase Agreement with Howard Ullman, the previous Chairman of the Board of CHDT, whereby they would purchase equally all of Mr. Ullman’s notes including the subordinated notes net of any offsets, monies due from Mr. Ullman to the Company. The original terms of all notes would remain the same. On July 12, 2011, this note payable was reassigned by Howard Ullman, equally split between Stewart Wallach, Director, and JWTR Holdings LLC. The note balance of $466,886 was reduced by $47,940 for offsets due by Howard Ullman. The revised loan balance of $418,946 was reassigned equally $209,473 to Stewart Wallach and $209,473 to JWTR Holdings LLC. As amended the note is due on or before July 1, 2015. As of March 31, 2015 the total combined balance due on these two notes was $541,808, which includes accrued interest of $122,862.

On July 11, 2008, the Company received a loan from a director in the amount of $250,000. As amended, the note was due on or before April 1, 2014 and carried an interest rate of 8% per annum. As part of this note payable, the Company also issued a warrant to the loan holder to purchase 4,000,000 shares of common stock at a price of $.025 per share. At the date of issuance, the stock price was $.021 per share. The Company accounted for the debt and warrants using APB 14, whereby the proceeds of $250,000 were allocated between the debt and warrants. This resulted in the warrants being valued at $56,375, which was recorded as additional paid-in capital, and a discount on the note of $56,375 being recognized. The discount was amortized over the term of the note (6 months) to interest expense. At December 31, 2008, the discount had been fully amortized resulting in interest expense of $56,375 being recognized. The warrants expired July 10, 2013. At December 31, 2013, the total amount payable on this note was $330,000 including interest of $80,000. This note along with accrued interest was paid in full on April 23, 2014.

On March 11, 2010, the Company received a loan from a Director in the amount of $100,000. As amended, the note is due on or before July 1, 2015 and carries an interest rate of 8% per annum. At March 31, 2015, the total amount payable on this note was $140,438 including interest of $40,438.

On May 11, 2010, the Company received a loan from a Director in the amount of $75,000. As amended, the note is due on or before July 1, 2015 and carries an interest rate of 8% per annum. The loan grants to the holder a security interest in the accounts receivable of the Company up to the amount of the unpaid principal. At March 31, 2015, the total amount payable on this note was $104,327 including interest of $29,327.

On January 15, 2013, the Company received a loan in the amount of $250,000 from Stewart Wallach, the Chief Executive Officer and Director of Capstone Companies, Inc. The loan carries an interest rate of 8% per annum. This loan was amended and the due date has been extended until July 1, 2015. This loan grants to the holder a security interest in the accounts receivable of the Company up to the amount of the unpaid principal. At March 31, 2015, the total amount payable on this note was $294,110 including interest of $44,110.

On January 15, 2013, the Company received a loan in the amount of $250,000 from a Director of Capstone Companies, Inc. The loan carries an interest rate of 8% per annum. This loan was amended and the due date has been extended until July 1, 2015.

This loan grants to the holder a security interest in the accounts receivable of the Company up to the amount of the unpaid principal. At March 31, 2015, the total amount payable on this note was $294,110 including interest of $44,110.

Purchase Order Assignment- Funding Agreements

On June 14, 2014, Capstone Industries, Inc. received a $125,000 loan from George Wolf, a consultant. This loan was due on or before December 31, 2014 and carried an interest rate of 1.0% simple interest per month. The loan was paid in full as of December 31, 2014.

On December 11, 2013, Capstone Industries, Inc. received $620,000 against a note from Jeffrey Postal. The note was due on or before July 2, 2014, and carried an interest rate of 1.0% simple interest per month. As of December 31, 2013, the total amount due under this note was $624,077 including accrued interest of $4,077. This note was paid in full during the quarter ended March 31, 2014.

On June 9, 2014, Capstone Industries, Inc. received $825,000 against two notes from Jeffrey Postal. The notes are due on or before December 31, 2014, and carried an interest rate of 1.0% simple interest per month. As of December 31, 2014, these notes were paid in full.

On February 9, 2015, Capstone Industries, Inc. received $200,000 against a note from Jeffrey Postal. The note is due on or before December 31, 2015, and carries an interest rate of 1.0% simple interest per month. As of March 31, 2015, the total amount due under this note was $203,288 including accrued interest of $3,288.

Working Capital Loan Agreements

On April 1, 2012, the Company signed a working capital loan agreement with Postal Capital Funding, LLC (“PCF”), a private capital funding company owned by Jeffrey Postal and James McClinton, the Company’s Chief Financial Officer. Pursuant to the agreement, the Company may borrow up to a maximum of $1,000,000 of revolving credit from PCF. Amounts borrowed carry an interest rate of 8%. As amended, this loan is due on or before July 1, 2015. As of March 31, 2015, the loan balance under this agreement was $593,290 including interest of $95,290.

Notes and Loans Payable to Related Parties – Maturities

The total amount payable to officers, directors and related parties as of March 31, 2015, was $2,171,371 including accrued interest of $379,425. The notes and loan payable to related parties mature during 2015.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References+ Details