NOTE 4   -  NOTES PAYABLE

Notes payable to Stockholders

As of March 31, 2019 and September 30, 2018, the Company had unsecured notes payable to stockholders totaling $147,589 and $147,589, respectively. These notes range in interest from 8% to 15% which are payable quarterly. Three notes with principal balances totaling $82,589 mature on December 31, 2019.  The remaining balance of the notes matures on June 30, 2019.  

In October 2017 and February 2018, the Company repaid the principal amount of a note payable totaling $15,782 to a shareholder.

In October 2017, the Company issued two promissory notes to a shareholder and director in the amount of $15,000 each.  The notes bear 8% interest and mature on June 30, 2019.

Interest expense on the notes payable to stockholders was $3,922 and $3,420 for the three months ended March 31, 2019 and 2018, respectively, and $7,165 and $6,838 for the six months ended March 31, 2019 and 2018, respectively.

Installment Loan Payable

On December 14, 2018, VoiceInterop entered into a Business Loan Agreement with WebBank whereby VoiceInterop borrowed $59,751, of this amount $15,491 was recorded as debt issuance cost. The debt issuance cost is amortized over the life of the loan. As of March 31, 2019, the loan balance is $42,840, net of debt issuance cost of $14,971. The amount is included in liabilities from discontinued operations (see Note 8). The agreement calls for 308 installments of $194 paid over 432 days. As of March 31, 2019, the loan balance is $33,457, net of debt issuance cost of $14,971. The amount is included in liabilities from discontinued operations (see Note 8).