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Payables to Related Parties
3 Months Ended
Mar. 31, 2016
Notes Payable to Related Parties  
Payables to Related Parties

Note 8 – Payables to Related Parties

 

Notes payable to related parties at March 31, 2016 consist of notes payable to stockholders of $400,000 (issued in 2012), less unamortized discount of $9,673 related to common stock warrants that had been issued to the stockholders with the notes. The discount is being amortized over the extended term of the notes, which are due in one principal payment on December 31, 2016. Interest is payable semiannually at 10%. The note is collateralized by all receivables now or hereafter existing pursuant to the license agreement with VDF FutureCeuticals, Inc. discussed in Note 3.

 

Payable to related party at March 31, 2016 consists primarily of a $20,000 unsecured note payable to Company shareholder Edward Gomez bearing interest at 10%. On June 11, 2015, the lender extended the maturity date on the balance of the note to July 31, 2016.