| Lines of Credit |
5. Lines
of Credit
As
of March 31, 2020, the Company had two lines of credit as follows:
| Creditor |
Interest
Rate |
Borrowing
Limit |
Repayment
Terms |
Amount
Outstanding |
Accrued
Interest |
Total |
Security |
Purpose |
| Chairman |
1%
per
Month |
$ 10,300,000 |
Due
on
Demand |
$ 9,976,233 |
$5,873,451 |
$15,849,684 |
General
Security
over
Assets |
General
Corporate
Requirements |
| Wife
of Chairman |
1%
per
Month |
2,000,000 |
Due
on
Demand |
2,000,000 |
2,036,385 |
4,036,385 |
General
Security
over
Assets |
General
Corporate
Requirements |
| Total |
|
$12,300,000 |
|
$11,976,233 |
$7,909,836 |
$19,886,069 |
|
|
As
of December 31, 2019, the Company had two lines of credit as follows:
| Creditor |
Interest
Rate |
Borrowing
Limit |
Repayment
Terms |
Principal
Borrowed |
Accrued
Interest |
Total
Outstanding |
Security |
Purpose |
| Chairman
and CEO |
1%
per Month |
$10,300,000 |
Due
on Demand |
$
9,757,325 |
$5,576,997 |
$15,334,322 |
General
Security over Assets |
General
Corporate Requirements |
| Wife
of Chairman |
1%
per Month |
2,000,000 |
Due
on Demand |
2,000,000 |
1,976,385 |
3,976,385 |
General
Security over Assets |
General
Corporate Requirements |
| Total |
|
$12,300,000 |
|
$11,757,325 |
$7,553,382 |
$19,310,707 |
|
|
On
December 11, 2019, the Company and the Chairman entered into an amendment agreement to increase the borrowing limit on the line
of credit provided by the Chairman to the Company from $8,500,000 to $10,300,000. The terms of amounts to be advanced under the
amendment are consistent with the line of credit. In connection with the line of credit, the Company granted the Chairman the
option to acquire 120,000,000 shares of common of the Company at a price of $0.015 per share for a term of five years (note 7).
|