Long-Term Notes Payable

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Long Term Notes Payable

Note 9. Long-Term Notes Payable

In 2016, the Company received cash advances totaling $47,500 from seven lenders which included $25,000 from three current Directors of the Company. The proceeds from the cash advances were earmarked for the payment of accounting and auditing fees and other expenses required to file the Company’s Form 10-Q. On August 25, 2016, the Company issued a Note to the foregoing lenders, which matures four years from the date of issuance and bears interest at 8% per annum, with a full year of interest accruing in any year in which the advance remains unpaid. Accrued interest due on the above notes amounted to $11,400 and $7,600 at December 31, 2018 and 2017, respectively.

In the third quarter of 2016, the Chairman of the Board of Directors of the Company loaned the Company $90,000. On August 25, 2016, the Company issued a Note to the Chairman of the Board. The Note bears interest at 14% per annum effective August 1, 2016 and matures four years from the date of issuance. The proceeds of the loan were used for the payment of Mississippi property taxes and auditing, accounting and other corporate expenses. Accrued interest due on the above note amounted to $30,482 and $17,882 at December 31, 2018 and 2017, respectively.

The principal due under the two foregoing loan arrangements totals $137,500. The Company has filed a second lien on its Mississippi property in favor of the note holders to secure both principal and interest in the maximum amount of $250,000. The lien is second to the existing first lien on the Mississippi property in the principal amount of $3.85 million.

In October 2017, the Company entered into a settlement with a holder of $150,000 of convertible notes as described in Note 5 above. As part of the settlement, the Company agreed to pay legal fees in the amount of $50,000 and issued a four year note at 0% interest to satisfy this obligation.

The table below summarizes the Company’s long-term notes payable as of December 31, 2018 and December 31, 2017:

	Principal Amount		Amount Due		Amount Due
Loan Facility	Owed		Related Parties		Others
4 Year 8% secured note	$	47,500	$	25,000	$	22,500
4 Year 14% secured note		90,000		90,000		-
4 Year 0% note		50,000		-		50,000
Total Due December 31, 2018	$	187,500	$	115,000	$	72,500
2 Year 12.5% secured note – See Note 7.	$	15,000	$	-	$	15,000
2 Year 4%/15% secured
note due Chairman – See Note 8.		67,628		67,628		-
2 Year 15% secured note
due President – See Note 8.		20,000		20,000		-
Total Due December 31, 2017	$	290,128	$	202,628	$	87,500