Zerify Inc (ZRFY)

[NCAR]

And Mark is the toxic lender!!!


Note 3 - Convertible Notes Payable – Related Parties

At June 30, 2017 and December 31, 2016, convertible notes payable - related parties consist of 12 convertible notes payable in the aggregate of $355,500. The notes are unsecured and due December 31, 2017. Six notes totaling $268,000 are due to the Company’s Chief Executive Officer, at a compounded interest rate of 8% per annum; two notes totaling $57,000 are due to the Company’s VP of Technology, interest at prime plus 2% and prime plus 4% per annum; and four notes totaling $30,000 are due to the spouse of the Company’s Chief Technology Officer at a compounded interest rate of 8% per annum. $33,000 of the notes are convertible at a fixed conversion price of $7,312,500 per share and $322,500 of the notes are convertible at a fixed conversion price of $9,750,000,000 per share, as defined in the note agreements.

At December 31, 2016, accrued interest due for the convertible notes – related parties was $437,305. During the six months ended June 30, 2017, interest expense of $29,476 was accrued. At June 30, 2017, accrued interest due for the convertible notes – related parties was $466,781. During the six months ended June 30, 2016, interest expense of $27,157 was recorded