Notes Payable - Related Parties
|6 Months Ended|
Mar. 31, 2020
|Debt Disclosure [Abstract]|
|NOTES PAYABLE - RELATED PARTIES||
4. NOTES PAYABLE – RELATED PARTIES
The aggregate principal balance as of March 31, 2020 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 $3,980 and $4,105, respectively, for the three months ended March 31, 2020 and 2019. Interest expense on notes payable – related parties was $7,971 and $8,108, respectively, for the six months ended March 31, 2020 and 2019.
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