Annual report pursuant to Section 13 and 15(d)

LINE OF CREDIT, NOTES PAYABLE RELATED PARTY AND NON-RELATED PARTY

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LINE OF CREDIT, NOTES PAYABLE RELATED PARTY AND NON-RELATED PARTY
12 Months Ended
Sep. 30, 2018
LINE OF CREDIT, NOTES PAYABLE RELATED PARTY AND NON-RELATED PARTY [Abstract]  
LINE OF CREDIT, NOTES PAYABLE RELATED PARTY AND NON-RELATED PARTY
NOTE 9 – LINE OF CREDIT, NOTES PAYABLE RELATED PARTY AND NON-RELATED PARTY

Notes payable

The company has a note payable dated January 2017 to a finance company for the finance of an automobile. The note bears interest at 3.25% per and calls for 60 monthly payments of $685 per month through March 2022.  Total balance of the note is $26,530 as of September 30, 2018, with current maturities of $7,463 and long-term maturities of $19,067.

Line of Credit

The Company has a $100,000 line of credit with a bank with a balance of $98,310 and $0 as of September 30, 2018 and 2017.  The line bears interest at prime rate (5.25% as of September 30, 2018), or a minimum of 4.5%, is collateralized by substantially all assets of the Company, and matures on May 15, 2019.

Notes payable – related parties

Current related party notes payable are as follows at September 30, 2018 and 2017, respectively:

   
September 30,
2018
   
September 30,
2017
 
             
Notes payable, shareholder, 0% interest, unsecured, due upon demand.  On May 18, 2016, the noteholder converted the note to an 8% unsecured promissory note due August 1, 2016.  This note is in default as of September 30, 2018.
 
$
100,000
   
$
100,000
 
                 
Notes payable, shareholder, 0% interest, unsecured, due upon demand
   
2,000
     
2,000
 
     
102,000
     
102,000
 
                 
Accrued interest
   
18,959
     
10,959
 
   
$
120,959
   
$
112,959
 

Interest expense related to these notes for the years ended September 30, 2018 and 2017 was $8,000 and $7,979, respectively.