Annual report pursuant to Section 13 and 15(d)

Subsequent Events

v3.20.1
Subsequent Events
12 Months Ended
Dec. 31, 2019
Subsequent Events [Abstract]  
Subsequent Events

NOTE 23 - SUBSEQUENT EVENTS

 

On March 16, 2020, the Company borrowed $100,000 under a short-term note. The note bears annual simple interest, at a rate of 14%, and matures on March 15, 2021. The Lender receives a one-time option grant to purchase 60,000 shares of the Company’s common stock for $0.10 per share for a period of 3 years from grant date, on the maturity date, with payment of principal and interest.

 

On March 17, 2020, the Company borrowed $50,000 under a short-term note. The note bears annual simple interest, at a rate of 14%, and matures on March 16, 2021. The Lender receives a one-time option grant to purchase 30,000 shares of the Company’s common stock for $0.10 per share for a period of 3 years from grant date, on the maturity date, on the maturity date, with payment of principal and interest.

 

On April 29, 2020, the Company borrowed $10,000 under a short-term note, from a related party. The note bears annual interest, at a rate of 8%, and matures on June 1, 2020. This note was subsequently paid on May 11, 2020.

 

On May 4, 2020, the Company borrowed $140,000 under a short-term note, from a related party. The note bears annual interest, at a rate of 15%, and matures on the earlier of i) June 3, 2020, or ii) the Company’s receipt of the Payroll Protection Loan (“PPP), secured by the SBA connected to the COVID-19 epidemic. This note was subsequently paid on May 11, 2020.

 

Under the Small Business Administration (“SBA”), the Company has applied for the PPP program. These loans are forgiven if used for payroll, payroll benefits including health insurance, and rent and utilities which is limited based on 25% of the loan, all of which is paid within 8 weeks of the approval of the loans. At the time of this filing, we have been approved for $590,300 in loans through SEER and our subsidiaries, and $503,400 has been funded. At the time of this filing, we do not anticipate having unqualified expenses which would not be forgiven. If we do have a portion of these loans not being forgiven, the unqualified portion is to be repaid over 2 years, accruing interest at 1% per annum.

 

The Company owes two notes to a lender, that accrue penalty shares until the notes are paid in full. The aggregate principal of these notes is $650,000, and shares accrued after year ended December 31, 2019, to the date of this filing total 482,500 shares.