RELATED PARTY TRANSACTIONS |
NOTE 9 – RELATED PARTY TRANSACTIONS
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A. |
Long-term debt consists of two note payables with a related party: |
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1) |
On October 31, 2018, Kona issued a Standard
Promissory Note in favor of Robert Clark, as lender, in the original principal amount of $20,000. Mr. Clark is the Company’s
President, Chief Executive Officer, Secretary, and Chairman of the Board. The note bears no interest. Principal payments of $500
per month commenced in February 2019, with the final payment due in March 2022. The outstanding principal balance of this note
at June 30, 2021 and December 31, 2020 was $5,500 and $8,500, respectively. |
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2) |
On February 19, 2019, Gold Leaf issued
a Standard Promissory Note in Favor of Robert Clark, as lender, in the original principal amount of $70,000. The note bears no
interest. Principal payments of $500 per month commenced in March 2019, with final payment due in March 2021. On March 15, 2021,
Gold Leaf issued an Amendment to the original issued Standard Promissory Note in Favor of Robert Clark for the remaining outstanding
principle of $58,000. Principal payment of $500 per month, with final payment due in March 2022. The outstanding principal balance
of this note at June 30, 2021 and December 31, 2020 was $56,500 and $59,500, respectively. |
The future maturities are as follows:
Schedule of future maturities | | |
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December 31, 2021(remaining 6 months) | | |
$ | 62,000 | |
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$ | 62,000 | |
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B. |
Lines of credit consists of two agreements with a related party: |
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1) |
On April 4, 2019, Kona entered into a Line
of Credit Agreement with Robert Clark. The agreement established a revolving line of credit in the amount of up to $1,500,000.
Advances under this line of credit bear interest at the rate of 3.75 percent per annum. The line of credit matures on April 4,
2022, at which time all outstanding principal amounts and accrued interest are due and payable. At June 30, 2021 and December
31, 2020, outstanding principal was $1,372,651 and $1,369,651, respectively, and accrued interest was $61,263 and $36,397, respectively. |
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2) |
On August 29, 2019, Gold Leaf entered into
a Line of Credit Agreement with Robert Clark. The agreement established a revolving line of credit in the amount of up to $200,000.
Advances under this line of credit bear interest at the rate of 3.75 percent per annum. The line of credit matures on August 29,
2022, at which time all outstanding principal amounts and accrued interest are due and payable. At June 30, 2021 and December
31, 2020, outstanding principal was $125,500 and $100,000, respectively, and accrued interest was $5,879 and $3,545, respectively. |
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