| Note 8 - LONG TERM DEBT |
Notes payable
(including accrued interest) are summarized as follows:
| |
|
|
December
31 |
|
|
December
31 |
|
| |
|
|
2018
|
|
|
2017
|
|
| |
|
|
|
|
|
|
|
| (1) |
Note
payable bearing interest at 12.0% per annum, due December 31, 2019 |
|
$ |
106,000 |
|
|
$ |
106,000 |
|
| (2) |
Note
bearing interest at 8% per annum, in default |
|
|
494,000 |
|
|
|
471,000 |
|
| (3) |
Non-interest
bearing note, in default |
|
|
10,000 |
|
|
|
10,000 |
|
| (4) |
Related
Party Long term debt, bearing interest at 8%, due April 15, 2021 |
|
|
92,000 |
|
|
|
- |
|
| (5) |
Related
Party Convertible Promissory notes, bearing interest at 8 - 18%, due December 31, 2019 |
|
|
714,000 |
|
|
|
657,000 |
|
| (6) |
Stockholder
Convertible notes bearing interest at 18% |
|
|
- |
|
|
|
217,000 |
|
| |
|
|
|
1,416,000 |
|
|
|
1,461,000 |
|
| |
Less
current maturities |
|
|
(1,361,000 |
) |
|
|
(1,461,000 |
) |
| |
|
|
|
|
|
|
|
|
|
| |
Total
Long-term debt |
|
$ |
55,000 |
|
|
$ |
- |
|
| Total
future minimum payments due on long-term debt as of December 31, 2018: |
|
|
|
| 2019 |
|
|
1,361,000 |
|
| 2020 |
|
|
42,000 |
|
| 2021 |
|
|
13,000 |
|
| |
|
|
1,416,000 |
|
_____________
| (1) |
A promissory note
dated December 31, 2018 was issued with a principal amount of $100,000 bearing interest at a rate of 12.0% per annum, with
a maturity date of December 31, 2019. |
| (2) |
An unsecured note,
with an annual rate of 8% per annum. The debt is in default as of December 31, 2018. |
| (3) |
An unsecured, non-interest
bearing note. The debt is in default as of December 31, 2018. |
| (4) |
The Company executed
a long term debt with a director of the Company as a part of the terms to a settlement agreement dated April 1, 2018 for $113,000
with an annual rate of 8.0% per annum. Principal payments in the amount of $3,000 with accrued interest were payable monthly
starting May 15, 2018. |
| (5) |
The Company issued
a note payable on June 30, 2017 with a principal amount of $747,000, with an annual rate of 18%, with principal and accrued
interest due on July 1, 2018. On June 30, 2018, the Company issued a second note with a principal amount of $225,000,
with an annual rate of 8%, and a default rate of 18%, with principal and accrued interest due on July 1, 2019. On December
31, 2018, the Company extended the terms of both notes until December 31, 2019. The outstanding balance on the notes
as of December 31, 2018 was $699,000 with accrued interest of $15,000. |
| (6) |
The Company executed
a convertible promissory note to a majority shareholder, on June 15, 2017 for $50,000 with an annual rate of 18% per annum,
with principal due on September 15, 2017 and accrued interest payable monthly. On December 31, 2017, the Company issued a
second convertible promissory note with an annual rate of 18%, with principal and accrued interest due on September 15, 2018
that replaced the first note. The note and all accrued interest was paid on November 2, 2018. |
|