Notes Payable

6 Months Ended

Jun. 30, 2017

During the year ended December 31, 2013, the Company entered a loan agreement with a non-related third party for $32,651. The loan is unsecured, non-interest bearing and due on demand. During the year ended December 31, 2016, the Company made payments of $6,500 (2015 - $0), and no payments were made during the six month ended June 30, 2017. As of December 31, 2016 and June 30, 2017, the Company owed $15,651

In March 2017 the Company leased a new vehicle with a $0 dollar purchase option at the end of the lease term. The Company determined the lease qualified as capital lease. The purchase price of the vehicle was $49,626. The Company agreed to pay a total of $59,238 over the 60 month term of the lease.

OnMay 23, 2017 the Company entered into a loan agreement and received $30,000. The Company agreed to repay a total of $35,000 on July 3, 2017. The Company recorded an original issue discount of $5,000 and is amortizing over the term of the note. As of June 30, 2017 the Company amortized debt discount of $4,634.

In June 2017 the Company leased a new vehicle with a $0 dollar purchase option at the end of the lease term. The Company determined the lease qualified as capital lease. The purchase price of the vehicle was $53,924. The Company agreed to pay a total of $63,532 over the 60 month term of the lease.

In June 2017 the Company leased a new vehicle with a $0 dollar purchase option at the end of the lease term. The Company determined the lease qualified as capital lease. The purchase price of the vehicle was $85,320. The Company agreed to pay a total of $102,268 over the 60 month term of the lease.

During the six months ended June 30, 2017, the Company made lease payment of $15,724 and amortized $1,969 deferred financing costs related to the leases. The total remaining lease obligation is $175,115, net of deferred financing cost of $34,200.

Dynamic Enviro Inc. 10-Q