Quarterly report pursuant to Section 13 or 15(d)

Promissory Notes

v3.20.2
Promissory Notes
9 Months Ended
Sep. 30, 2020
Promissory Notes [Abstract]  
PROMISSORY NOTES

NOTE 5 – PROMISSORY NOTES


October 23, 2019 Note


On October 23, 2019, an investor of the Company subscribed for a promissory note (the “October Note”) and loaned to the Company $50,000.


The October Note bears interest at a fixed rate of 14% per annum, computed based on a 360-day year of twelve 30-day months, which interest will be payable quarterly until the maturity date. The principal amount and any accrued and unpaid interest due under the October Note was originally to mature on October 21, 2020, subject to a thirty-day grace period. On November 13, 2020, the Company entered into an allonge with the investor that extended the maturity date of the note to April 21, 2021 (See Note 11). The Company recorded $1,357 of accrued interest and has a total outstanding principal balance of $50,000 as of September 30, 2020.


The October Note contains customary events of default, which, if uncured, entitle the lender to accelerate the due date of the unpaid principal amount of, and all accrued and unpaid interest on, the October Note.


February 21, 2020 Note


On February 21, 2020, a third party loaned the Company $20,000, evidenced by a non-convertible promissory note (the “February Note”).The February Note bears interest at a fixed rate of 12% per annum, computed based on a 360-day year of twelve 30-day months, which interest will be payable quarterly until the maturity date. The principal amount and any accrued and unpaid interest due under the February Note were originally payable on July 1, 2020. On July 28, 2020 the Company entered into an allonge, effective July 1, 2020, to extend the original maturity date to February 21, 2021. The Company recorded $867 of accrued interest and has a total outstanding principal balance of $20,000 as of September 30, 2020.


The February Note contains customary events of default, which, if uncured, entitle the lender to accelerate the due date of the unpaid principal amount of, and all accrued and unpaid interest on, the February Note.