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8. Notes Payable - Related Parties
6 Months Ended
Jun. 30, 2017
Debt Disclosure [Abstract]  
Notes Payable - Related Parties

The balance of the note payable to a member of the Company’s board of directors was $384,055 at June 30, 2017 ($386,065 at December 31, 2016). Principal and interest are paid monthly using an amortization schedule requiring annual principal payments of approximately $8,000 with all remaining outstanding amounts due on January 1, 2020. The current portion of approximately $10,000 is offset by the current portion of deferred financing costs of approximately $8,000. The effective rate of interest was 7.10% at June 30, 2017. On June 29, 2017, the Company borrowed $20,000 under the terms of a 6% unsecured demand note from this board member.

 

During June 2017, the Company borrowed $9,000 under the terms of a 6% unsecured demand note from an executive officer.

 

A 7% note payable of $25,000 due to a related party matures on March 31, 2018 and is classified as a current liability in the accompanying balance sheet at June 30, 2017.