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 stipulated equal monthly payments of principal and interest payments of $39,114 over a nine-month period. Interest accrued on this loan at an annual rate of 2.25%. This loan was fully repaid in July 2017.

In November 2017, the Company entered into a loan agreement with a financing company for $415,265 to finance one of the Company’s insurance policies. The terms of the loan stipulate equal monthly payments of principal and interest payments of $41,975 over a ten-month period. Interest accrues on this loan at an annual rate of 2.35%.

Prepaid expenses as of June 30, 2018 and December 31, 2017 included $142,476 and $368,976, respectively, related to this insurance policy.

For the three months ended June 30, 2018 and 2017, interest expense for notes payable totaled $904 and $602, respectively. For the six months ended June 30, 2018 and 2017, interest expense for notes payable totaled $2,564 and $1,879, respectively.