XML 19 R8.htm IDEA: XBRL DOCUMENT

3. Related Party Notes Payable

6 Months Ended

Jun. 30, 2017

3. Related Party Notes Payable

3. Related Party Notes Payable

At June 30, 2017 and December 31, 2016, the Company had the following notes and interest payable to related parties:

		June 30, 2017		December 31, 2016
Mine Systems Design (“MSD”), a company in which our Company’s Vice President owns 10.4%, 12% interest, monthly payments of $4,910 through October 2018	$	92,793	$	115,868
John Swallow, Company president, 5% interest, monthly payments of $5,834 with balloon payment of $416,295 in February 2019		489,428		520,010
John Swallow, Company president, 5% interest, principal and interest due February 2019		245,516		341,250
Margaret Bathgate, shareholder, 5% interest, principal and interest due January 2018		100,000		100,000
		927,737		1,077,128
Accrued interest payable		9,736		4,167
Total		937,473		1,081,295
Current portion		203,753		567,580
Long term portion	$	733,720	$	513,715

Related Party interest expense for the three and six month periods ending June 30, 2017 and 2016 is as follows:

June 30, 2017				June 30, 2016
3 months		6 months		3 months		6 months
$	13,636	$	28,969	$	16,791	$	30,682

During the quarter ended March 31, 2017 in conjunction with a private placement (Note 9), the Company issued 1,000,000 units of its common stock and warrants with a value of $100,000 in exchange for $95,734 in principal and $4,266 in accrued interest on a note payable due to John Swallow, the Company’s president.

Subsequent to June 30, 2017, notes with Mr. Swallow were amended to extend the balloon payments on both notes to February 2019.