9. Notes Payable - Related Party

As of June 30, 2020, the Company had various notes payable to Gloria E. Gebbia, the Company’s principal stockholder, the details of which are presented below:

Description	Issuance Date	Face Amount
4% due December 2, 2020	December 2, 2019	$	3,000,000

Subordinated to MSCO*
4% due November 30, 2020**	November 30, 2018	$	3,000,000
4% due September 4, 2020	September 4, 2019	$	2,000,000
			5,000,000

Total Notes payable – related party		$	8,000,000

*The notes payable subordinated to MSCO were acquired as part of the acquisition of StockCross

**This note payable was renewed on November 30, 2019 for a term of one year

The interest expense incurred for the three months ended June 30, 2020 and 2019 was $88,000 and $31,000, respectively. The interest expense incurred for the six months ended June 30, 2020 and 2019 was $164,000 and $52,000, respectively. The interest payable for these notes was $30,000 and $10,000 as of June 30, 2020 and December 31, 2019, respectively. Effective March 3, 2020, the interest rates on the loans due November 30, 2020 and September 4, 2020 were renegotiated from 2.75% and 1.75%, respectively, to 4%. There was no consideration paid or received as part of this renegotiation.

Notes subordinated to MSCO are subordinated to the claims of general creditors, approved by FINRA, and are included in MSCO’s calculation of net capital and the capital requirements under FINRA and SEC regulations.