8 NOTES PAYABLE - RELATED PARTIES

12 Months Ended

Dec. 31, 2016

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

8.    NOTES PAYABLE - RELATED PARTIES

Notes Payable/Related Parties Summary
As of December 31, 2016
Noteholder	Note Amount		Date		Unpaid
MAS Global	$	150,000	Jan-12		$	111,863
Marc Shenkman	$	10,000	Feb-12		$	10,000
Shareholder	$	25,000	Feb-12		$	25,000
Shareholder	$	10,000	2/23/2012		$	10,000
Albert Masjedi	$	500,000		2013	$	392,772
Marc Shenkman	$	10,000	3/14/2013		$	6,000
MAS Global	$	86,821	3/14/2013		$	86,821
Marc Shenkman	$	16,000		2014	$	16,000
Shannon Masjedi	$	25,592		2012-2016	$	25,592
Total	$	833,413			$	684,048

In January 2011, MAS Global Distributors, Inc. ("MGD"), which is now a majority owned subsidiary of Snöbar Holdings, entered into an unsecured promissory note with Mrs. Masjedi, who is now the Company's President, Chief Executive Officer, Interim Chief Financial Officer and a director.  The note had a principal balance of $150,000 with an interest rate of 3% and has a maturity date of December 31, 2020.  Interest against the note was extinguished in a subsequent extension of the term. The balance of the note at December 31, 2016 was $111,863.

On February 21, 2012, Snöbar Holdings entered into an unsecured promissory note with Mr. Shenkman, who is Chairman of our Board of Directors and a shareholder of the Company. The note had a principal balance of $10,000 with an interest rate of 5% and is due on demand. The note's maturity date has subsequently been extended to December 31, 2020.  Interest against the note was extinguished in a subsequent extension of the term The note has a principal balance of $10,000 as of December 31, 2016.

On February 23, 2012, Snobar Holdings entered into a promissory note with Mr. Shenkman, who is Chairman of our Board of Directors and a shareholder of the Company, for $10,000, maturing in one year at an interest of 8%.  The note has subsequently been extended to December 31, 2020. Interest against the note was extinguished in a subsequent extension of the term.  As of December 31, 2016 there is a $10,000 balance.

Snöbar Holdings entered into a promissory note agreement with Albert Masjedi, Mrs. Masjedi's father-in-law and a former officer of Snobar Holdings, to purchase all shares and interests in IPIC, including liquor licenses, for $500,000. The note bears no interest and payments are due in five installments of $100,000 due each year beginning on December 31, 2013 and until December 31, 2017. The entire purchase price of $500,000 was expensed in 2013. In April of 2016, the Company renegotiated its licensing rights contract and agreement in order to add accrual of late fees, legal fees and penalties in the amount of $173,250. As of December 31, 2016  and December 31, 2015, the balance on the note was $392,772 and $219,522, respectively. 

On March 14, 2013, Snöbar Holdings entered into an unsecured promissory note with Mr. Shenkman, who is Chairman of our Board of Directors and a shareholder of the Company.  The note had a principal balance of $10,000 with an interest rate of 5% and had a maturity date of March 14, 2014 and was subsequently extended to December 14, 2020. Interest against the note was extinguished in a subsequent extension of the term. The note is current and has an outstanding balance of $6,000 and $6,000 as of December 31, 2016 and 2015 respectively.

In 2014, Snöbar Holdings entered into unsecured promissory notes with Mr. Shenkman, who is Chairman of our Board of Directors and a shareholder of the Company  The notes had a total principal balance of $16,000 with an interest rate of 2% and are due on Dec 31 2018 subsequently extended to December 31, 2020. Interest against the note was extinguished in a subsequent extension of the term. As of December 31, 2016 the balance was $16,000.

From 2012 through December 31, 2016, Mrs. Masjedi, our CEO, President, Treasurer and Interim CFO, has provided an unsecured credit line to the Company, payable on demand without interest.  As of December 31, 2016 the current balance is $25,693.

As of December 31, 2016 and December 31, 2015, Mrs. Masjedi, our CEO, President, Treasurer and Interim CFO, has advanced $6,130 to IPIC to pay for operating expenses.

We believe that each reported transaction and relationship is on terms that are at least as fair to us as would be expected if those transactions were negotiated with third parties.