Quarterly report pursuant to Section 13 or 15(d)

NOTE PAYABLE - RELATED PARTY

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NOTE PAYABLE - RELATED PARTY
6 Months Ended
Jun. 30, 2018
Notes to Financial Statements  
NOTE 8. NOTE PAYABLE - RELATED PARTY

On July 25, 2017, the Company settled its line-of-credit with the Denver Savings Bank through a promissory note from Mike Kemery, a Principal at K4 Enterprises (an entity partially owned and controlled by the President and Chief Executive Officer of the Company), in the principal amount of $1,500,000. The note carries an interest rate of 4.5% per annum and matures in three years. Pursuant to the terms of the agreement, the Company incurred a $300,000 loan origination fee, payable on demand. The Company recorded the fee as a debt discount. The discount is being amortized over the life of the note and the unamortized balance at June 30, 2018 was $206,244, see Note 7.