Quarterly report pursuant to Section 13 or 15(d)

SUBSEQUENT EVENTS

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SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2019
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 19 – SUBSEQUENT EVENTS

 

On July 2, 2019, the Company borrowed $100,000 under a short-term note, secured by all assets of Pellechar, LLC, a subsidiary of the Company. The note bears annual simple interest, at a rate of 12%. The Lender received a one-time stock option grant to purchase 500,000 shares of common stock, at $0.70 a share. The options have a contract term of three years.

On July 18, 2019, the Company borrowed $150,000 under a short-term note from a current lender. The Company paid a one-time fee of $5,000 and will accrue a fee of $500 for each week after August 1, 2019 the note is outstanding. If the note is not repaid on or before the seventh month the note is outstanding, 30,000 shares of restricted common stock of the Company shall be issued to the lender.

 

In August 2019, the Company collected a note receivable of $300,000, which was fully allowed for previously. The collection resulted in the recording of a gain for the entire amount, as the carrying value was $0.