NOTE 4   -  NOTES PAYABLE

Notes payable to Stockholders

As of June 30, 2019 and September 30, 2018, the Company had unsecured notes payable to stockholders totaling $83,302 and $147,589, respectively. These notes range in interest from 8% to 15% which are payable quarterly. Three notes with principal balances totaling $65,000 matured on June 30, 2019, and are currenlty in default. The remaining note matures on December 31, 2019.  On June 18, 2019, the note holders converted $65,000 of notes payable, $22,302 of accrued interest and $7,204 of accrued dividends into 3,150,199 shares of common stock at a conversion price of $0.03 per share (See Note 5 and 6).

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 $3,990 and $3,243 for the three months ended June 30, 2019 and 2018, respectively, and $11,155 and $10,081 for the nine months ended June 30, 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 agreement calls for 308 installments of $194 paid over 432 days. The debt issuance cost is amortized over the life of the loan. As of June 30, 2019, the loan balance is $24,092, net of debt issuance cost of $8,499. The amount is included in liabilities from discontinued operations (see Note 8).