Notes Payable - Related Parties
|9 Months Ended|
Jun. 30, 2019
|Debt Disclosure [Abstract]|
|NOTES PAYABLE - RELATED PARTIES||
4. NOTES PAYABLE – RELATED PARTIES
The aggregate principal balance as of June 30, 2019 consists of notes payable held by our Chairman, Leonard Mazur, in the amount of $160,470 and notes payable held by our Chief Executive Officer, Myron Holubiak, in the amount of $12,500. Notes with an aggregate principal balance of $104,000 accrue interest at the prime rate plus 1.0% per annum and notes with an aggregate principal balance of $68,970 accrue interest at 12% per annum.
Interest expense on notes payable – related parties was $4,138 and $3,900, respectively, for the three months ended June 30, 2019 and 2018. Interest expense on notes payable – related parties was $12,246 and $11,797, respectively, for the nine months ended June 30, 2019 and 2018.
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef