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Notes Payable to Related Parties
12 Months Ended
Dec. 31, 2016
Notes Payable to Related Parties  
Notes Payable to Related Parties

Note 8 - Notes Payable to Related Parties

 

Notes payable to related parties at December 31, 2016 consist of notes payable to stockholders of $400,000 (issued in 2012), less unamortized discount of $12,885 related to common stock warrants that had been issued to the stockholders with the notes. The discount was fully 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 notes are collateralized by all receivables now or hereafter existing pursuant to the license agreement with VDF FutureCeuticals, Inc. discussed in Notes 3 and 9.

On December 30, 2016, the noteholders agreed to extend the maturity date an additional 90 days, to March 31, 2017.In the first quarter of 2017, the Note holders agreed to extend the maturity date of the Notes until September 30, 2017.

 

The notes payable to related parties at December 31, 2015 also includes a promissory note to a stockholder for $25,000. The principal balance and interest at 10% was due March 30, 2016. This note was paid in full, with accrued interest, in February 2016.

 

The notes payable to related parties at December 31, 2016 also includes a promissory note to a stockholder for $25,000. The principal balance and interest at 10% was due March 30, 2016. This note was paid in full, with accrued interest, in January 2017.