NOTE 5   - NOTES PAYABLE

Notes payable to Stockholders

As of September 30, 2019 and September 30, 2018, the Company had unsecured notes payable to stockholders totaling $92,869 and $147,589, respectively. These notes range in interest from 8% to 15% which are payable quarterly. One note with a principal balances of $17,588 is due on December 31, 2019.  

On September 30, 2019, the note holder converted $65,000 of note payable and $10,279 of accrued interest into an installment promissory note with a principal balance of $75,279.  The note is due on September 30, 2021 and bears an interest rate of 8%.  This note requires a monthly payment of $3,405 for the next 24 months.    

On June 18, 2019, two 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 6 and 7).    

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.  The note was converted to installment promissory note on September 30, 2019 (See an installment promissory note dated September 30, 2019 above).    

Interest expense on the notes payable to stockholders was $11,155 and $13,324 for the years ended September 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  September 30, 2019, the loan balance is $14,587, net of debt issuance cost of $5,200. The amount is included in liabilities from discontinued operations (see Note 9).