Quarterly report pursuant to Section 13 or 15(d)

Notes Payable

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Notes Payable
6 Months Ended
Jun. 30, 2017
Debt Disclosure [Abstract]  
Notes Payable

6. NOTES PAYABLE

 

In November 2015, the Company entered into a loan agreement with a financing company for $207,750 to finance one of the Company’s insurance policies. The terms of the loan stipulated equal monthly payments of principal and interest payments of $23,397 over a nine-month period. Interest on this loan was accrued at an annual rate of 3.25%. This loan was fully repaid in July 2016.

 

In October 2016, the Company entered into a loan agreement with a financing company for $348,750 to finance one of the Company’s insurance policies. The terms of the loan stipulate equal monthly payments of principal and interest payments of $39,114 over a nine-month period. Interest accrues on this loan at an annual rate of 2.25%. Prepaid expenses as of June 30, 2017 and December 31, 2016, included $146,250 and $378,750, respectively, related to this insurance policy.

 

For three months ended June 30, 2017 and 2016, interest expense for notes payable totaled $602 and $567, respectively. For six months ended June 30, 2017 and 2016, interest expense for notes payable totaled $1,879 and $1,697, respectively.

 

Notes payable consisted of the following:

 

    June 30, 2017     December 31, 2016  
             
Notes payable   $ 39,041     $ 271,757  
Less: current portion     (39,041 )     (271,757 )
Long term portion   $     $