Annual report pursuant to Section 13 and 15(d)

LOANS PAYABLE

v3.19.1
LOANS PAYABLE
12 Months Ended
Dec. 31, 2018
Debt Disclosure [Abstract]  
LOANS PAYABLE
8 LOANS PAYABLE

  

Loans payable consisted of the following: 

 

Description   Interest
Rate
    Maturity     December 31,
2018
    December 31,
2017
 
Gibbs International Holdings – equipment funding     36 %     On Demand     $     $ 294,620  
Strategic IR     10 %     February 10, 2020     $ 177,159     $  
Victoria Akhmetova     18 %     January 11, 2020         56,044        
Total loans payable                   $ 233,203     $ 294,620  

  

Interest expense totaled $120,336 and $0 for the year ended December 31, 2018 and 2017, respectively.

  

Gibbs International Holdings – equipment funding

 

The Company entered into an agreement with Gibbs, whereby the importation of kiosks and accessories was arranged and funded by Gibbs. In terms of the agreement entered into with Gibbs, a 5% margin has been added to the cost of the kiosks and accessories purchased and to the liability outstanding. The amount was due on November 1, 2017. On August 20, 2018 the principal of $294,620 together with accrued interest of $111,115 was converted to a convertible promissory note of $405,735.

 

Strategic IR

 

Strategic IR advanced the Company $168,000 between January 16 and June 15, 2018. This loan was formalized into a written note on October 13, 2018 and bears interest at the rate of 10% per annum. The note had a maturity date of February 10, 2019. On March 18, 2019 the note was extended to February 10, 2020. The note may be prepaid at any time without premium or penalty. The balance of the note plus accrued interest at December 31, 2018 was $177,159.

 

Viktoria Akhmetova

 

On April 17, 2018, the Company issued a Promissory Note in the aggregate principal amount of $50,000 to Viktoria Akhmetova. The note had a maturity date of September 13, 2018 and a coupon of eighteen percent per annum. The Company has the right to prepay the note without penalty prior to maturity date. On September 13, 2018, the maturity date of the note was extended to January 11, 2019. On March 19, 2019, the note was extended to January 11, 2020. The balance of the note plus accrued interest at December 31, 2018 was $56,044.