NOTES PAYABLE-RELATED PARTIES
|12 Months Ended|
Dec. 31, 2020
|NOTES PAYABLE-RELATED PARTIES|
|NOTE 11 - NOTES PAYABLE-RELATED PARTIES||
As of December 31, 2020 and 2019, the Company had advances from Kent Emry (Chairman of the Company). The balance outstanding as of December 31, 2020 and 2019 was $1,500.
On January 26, 2018, the Company issued to Joe Galligan (majority shareholder of the Company) one unsecured promissory notes of $125,000 bearing interest at 8% per annum with both principal and initially interest due July 26, 2018. In connection with the note issuance, the Company issued 50,000 shares of the Company’s common stock to Joe Galligan. The fair value of the common stock at the date of issuance of $12,750 was recorded as a debt discount and is amortized as interest expense over the term of the note. During 2019 and 2020 the note was extended three times, ultimately rendering the note due on demand. The balance outstanding as of December 31, 2020 and 2019 was $125,000.
On January 22, 2013, the Company issued an unsecured promissory note payable to Kent Emry (Chairman of the Company) for $200,000 due January 1, 2018, with a stated interest rate of 12% per annum beginning three months from issuance, payable monthly. Principal payments were due starting February 1, 2015 at $6,650 per month. The lender has an option to convert the note to licensing rights for the State of Oregon. The Company currently is in default of the principal and interest. The note holder subsequently became an officer of the Company. The balance outstanding as of December 31, 2020 and 2019 was $163,610.
The interest expense during the year ended December 31, 2020 and 2019 were $29,865 and $29,783, respectively. As of December 31, 2020 and 2019, the accumulated interest on related parties notes payable was $155,768 and $125,903, respectively, and was included in accounts payable and accrued expenses on the balance sheet.