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Note Payable
 3 Months Ended
Mar. 31, 2018
Debt Disclosure [Abstract]  
Note Payable

NOTE 7 NOTES PAYABLE

 

At March 31, 2018 and December 31, 2017, the Company had a note payable to a bank in the amount of $40,642 and $70,222, respectively. The note bears interest at prime plus 1.5%, which was 6% as of March 31, 2018, and matures on August 28, 2018. The note is secured by the assets of the Company and personal guarantees by a shareholder and an officer of the Company.

 

On April 13, 2016, the Company entered into a Line of Credit Promissory Note with a third party (the “Line of Credit”), as amended and extended, in the principal sum of up to ten million U.S. Dollars (US $10,000,000) to support purchase orders, inventory and general working capital needs. The Company may draw and/or repay this Line of Credit from time to time until the maturity hereof. The Note provides for monthly payments of interest at nine percent (9%) per annum on outstanding principal and matures on January 10, 2019, at which time the full principal amount and accrued but unpaid interest become due.

 

The Line of Credit note is secured by the assets of the Company. As of March 31, 2018, and December 31, 2017, the outstanding balance on this note was $3,922,082 and $3,456,732, respectively.

 

The Company received a $500,000 loan from a related party in January 2016. The note is on demand and carries interest of 12%. As of March 31, 2018, the outstanding balance is $200,000.

 

Principal payments due under the terms of the notes described above are as follows:

 

Principal Due in Next 12 months    
  2018     $ 240,642  
  2019       3,922,082  
        $ 4,162,724