XML 23 R13.htm IDEA: XBRL DOCUMENT

8 RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2017

8. RELATED PARTY TRANSACTIONS

The following table presents a summary of the Company's promissory notes issued to related parties as of June 30, 2017:

*Noteholder*	*Note Amount*		*Issuance Date*	*Unpaid Amount*
S. Masjedi	$	150,000	12/10/2010	$	122,692
A. Masjedi		500,000	6/1/2013		192,772
M. Shenkman		10,000	2/21/2012		10,000
M. Shenkman		10,000	2/23/2102		10,000
M. Shenkman		10,000	3/14/2013		6,000
M. Shenkman		16,000	9/9/2014		16,000
Total	$	696,000		$	357,464

The following description represent note payable-related party transaction pre-Share Exchange that were assumed by the Company as a condition to the Share Exchange:

In January 2011, 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, director and majority stockholder. 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 of the note. The balance of the note at June 30, 2017 was $122,692.

On February 21, 2012, Snöbar Holdings entered into an unsecured promissory note with Mr. Shenkman, who is Chairman of the 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 had a principal balance of $10,000 as of June 30, 2017

On February 23, 2012, Snobar Holdings entered into a promissory note with Mr. Shenkman 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 June 30, 2017, there was a $10,000 balance.

As of June 30, 2017, the Company recorded $110,281 in current notes payable-related party and $247,183 in long term notes payable-related party for a total of $357,464.

On March 14, 2013, Snöbar Holdings entered into an unsecured promissory note with a Mr. Shenkman, the Company's Chairman of the Board of Directors. The note had a principal balance of $10,000 with an interest rate of 5% and an original maturity date of March 14, 2014, subsequently extended to December 31, 2020 with a lower interest rate of 2%/year. Mr. Shenkman also agreed to make all interest retroactive and deferred. The note had an outstanding balance of $6,000 as of June 30, 2017.

On September 9, 2014, Snobar Holdings entered into a second unsecured promissory note with Mr. Shenkman, through his affiliate company Entrust Group for a total amount of $6,000 and a third unsecured promissory note for a total amount of $10,000, both at an annual interest rate of 2%. No term was provided for in each note, but Mr. Shenkman has agreed to a maturity date of December 31, 2020 and the accrual of interest rates and deferral to maturity. As of June 30, 2017 the notes had balances of $16,000 in each period.

On June 1, 2013 Snöbar Holdings entered into a promissory note with Azizolla Masjedi, father-in-law to Shannon Masjedi who's the Company's President, Chief Executive Officer, Interim Chief Financial Officer, director and majority stockholder, in an amount of $500,000 to purchase all the shares and interests of IPIC. The note matures on December 31, 2017 As of June 30, 2017 the balance on this note was $192,772.

As of June 30, 2017, the Company had short term Notes Payable – Related Party of $110,281 and long term of $247,183.