Related Party Transactions and Balances
|9 Months Ended|
Sep. 30, 2018
|Related Party Transactions [Abstract]|
|Related Party Transactions and Balances||
NOTE 7 – RELATED PARTY TRANSACTIONS AND BALANCES
In May 2017, the Company executed three unsecured promissory notes with an aggregate principal balance of $400,000, with an officer and director, bearing an interest rate of 10% per annum, due on demand or before September 30, 2018. On September 30, 2018, the Company extended the maturity date of the promissory notes to three (3) business days after the consummation of the sale of the Company’s equity securities in an IPO. On September 30, 2018, the Company and the officer and director mutually agreed to convert $200,000 of the principal of the promissory notes into shares of common stock of the Company at a conversion price equal to the per unit price of the initial public offering, with the remaining $200,000 balance of the principal and accrued interest to be paid in cash. The Company has recorded interest expense of $10,082 and $3,206 on these promissory notes for the three months ended September 30, 2018 and 2017, respectively, and interest expense of $29,918 and $6,836 on these promissory notes for the nine months ended September 30, 2018 and 2017, respectively. The Company has recorded $40,000 and $10,082 as accrued interest as of September 30, 2018 and December 31, 2017, respectively.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef