Quarterly report pursuant to Section 13 or 15(d)

LOANS PAYABLE

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LOANS PAYABLE
6 Months Ended
Jun. 30, 2020
Loans Payable [Abstract]  
LOANS PAYABLE
8 LOANS PAYABLE

 

Loans payable consisted of the following:

 

Description   Interest
Rate
    Maturity   June 30,
2020
    December 31,
2019
 
                       
Stanislav Minaychenko     4.0 %   September 16, 2020     14,250       23,930  
Maxim Pukhoskiy     4.0 %   June 16, 2020     7,886       17,683  
Alexander Motorin     4.0 %   December 23, 2020     -       20,018  
Total loans payable               $ 22,136     $ 61,631  

 

Interest expense totaled $238 and $561 for the three and six months ended June 30, 2020, respectively, and $2,312 and $9,871 for the three and six months ended June 30, 2019, respectively.

 

Stanislav Minaychenko

 

On December 17,2019, in terms of a settlement agreement entered into between the Company, Qpagos Corporation and Stanislav Minaychenko, the Company issued a promissory note to Mr. Minaychenko in settlement of $23,893 owing to him in terms of a service agreement dated September 1, 2015. The promissory note bears interest at 4% per annum, is unsecured and matures on June 16, 2020.

 

During the six months ended June 30, 2020, the Company repaid an aggregate principal amount of $10,000.

 

On July 1, 2020, the Company entered into an extension agreement with Stanislav Minaychenko, extending the maturity date to September 16, 2020.

 

The balance of the promissory note, including interest thereon at June 30, 2020 is $14,250.

 

Maxim Pukhoskiy

 

On December 17, 2019, in terms of a settlement agreement entered into between the Company, Qpagos Corporation and Maxim Pukhoskiy, the Company issued a promissory note to Mr. Pukhoskiy in settlement of $17,856 owing to him in terms of a service agreement dated May 1, 2015. The promissory note bears interest at 4% per annum, is unsecured and matures on June 16, 2020.

 

During the six months ended June 30, 2020, the Company repaid an aggregate principal amount of $10,000.

 

The note is currently in default as we were unable to pay the outstanding balance by June 16, 2020. The note has no default penalties and we anticipate repaying the note as soon as we have sufficient funds.

 

The balance of the promissory note, including interest thereon at June 30, 2020 is $7,886.

 

Alexander Motorin

 

On December 23, 2019, in terms of a debt purchase agreement entered into with Waketec OU, Mr. Motorin acquired $20,000 of the promissory note issued to Waketec OU by Qpagos Corporation. On December 23, 2019, the Company entered into a debt settlement agreement whereby the company agreed to the assignment of the debt owed to Mr. Motorin by Qpagos Corporation to the Company in exchange for a new promissory note in the principal amount of $20,000 issued by the Company. The promissory note is unsecured, bears interest at 4% per annum and matures on December 23, 2020.

 

On January 7, 2020, the Company entered into a debt exchange agreement whereby the aggregate principal sum of $20,000 plus accrued interest of $33 was exchanged for 1,001,644 shares of common stock at an issue price of $0.02 per share, realizing a loss on exchange of $20,033.