Quarterly report pursuant to Section 13 or 15(d)

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

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LINE OF CREDIT, NOTES PAYABLE RELATED PARTIES AND NON-RELATED PARTY
6 Months Ended
Mar. 31, 2019
LINE OF CREDIT, NOTES PAYABLE RELATED PARTIES AND NON-RELATED PARTY [Abstract]  
LINE OF CREDIT, NOTES PAYABLE RELATED PARTIES AND NON-RELATED PARTY
NOTE 9 – LINE OF CREDIT, NOTES PAYABLE RELATED PARTIES AND NON-RELATED PARTY

Note 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 $21,461 as of March 31, 2019, with current maturities of $7,392 and long-term maturities of $14,069.

Line of Credit

The Company has a $100,000 line of credit with a bank with a balance of $98,310 as of March 31, 2019 and September 30, 2018.  The line bears interest at prime rate (5.50% as of March 31, 2019), or a minimum of 4.5%, is collateralized by substantially all assets of the Company, and matured on May 15, 2019.  This line of credit is currently in default.

Notes payable – related parties

Current related party notes payable are as follows at March 31, 2019 and September 30, 2018, respectively:

   
March 31,
2019
   
September
30,
2018
 
             
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 March 31, 2019.
 
$
100,000
   
$
100,000
 
                 
Notes payable, shareholder, 0% interest, unsecured, due upon demand
   
2,000
     
2,000
 
     
102,000
     
102,000
 
                 
Accrued interest
   
22,948
     
18,959
 
   
$
124,948
   
$
120,959
 

Interest expense related to these notes for the six months ended March 31, 2019 and 2018 was $3,989 and $3,989, respectively.