WE need more of this
NOTE 5 – RELATED PARTY TRANSACTIONS
Promissory Note Payable, Related Party
The Chairman of the Company’s board of directors has advanced funds to the Company from time to time for working capital. As of September 30, 2014 and December 31, 2013, amounts payable to this individual were $116,421 and $89,422, respectively. These advances were previously non-interest bearing, unsecured, and due on demand. On March 1, 2013, the Company converted the outstanding advance amount of $89,422 into a promissory note, and this individual advanced an additional $27,000 to the Company in January, 2014. Interest at the rate of 5.5% per annum is compounded and charged annually. Principal payments in the amount of $14,966 and accrued interest were to be paid in nine installments, with the first payment due on June 15, 2013. No payments have been made through September 30, 2014. Interest expense on this note as of and for the nine months and quarters ended September 30, 2014 and 2013 was approximately $4,100 and $1,600, respectively.
