Related Party Transactions

6 Months Ended

Jun. 30, 2022

Note 3 – Related Party Transactions

	(i)	During the six months ended June 30, 2022 and 2021, the Company’s controlling shareholder advanced to the Company an amount of $0 and $74,184, respectively, to pay certain expenses on behalf of the Company.

	(ii)	During the six months ended June 30, 2022 and 2021, the Company paid $6,000 and $3,000 of management fees to the sole officer and director of the Company.

Note payable – related party

On May 10, 2021, the Company received a loan of $100,000 from Peter L. Coker, Sr., a shareholder of the Company. To evidence said loan, the Company issued to Mr. Coker a promissory note in the principal amount of $100,000 (in this case, the “Note”), with a maturity date of May 9, 2022. Interest on the Note accrued on the principal amount at the rate of six percent (6%) per annum, and was required to be paid on a quarterly basis, in the amount of $1,500 per quarter, on the following dates: August 10, 2021, November 10, 2021, February 10, 2022, and May 10, 2022. The Company was permitted to prepay any amounts due under the Note without penalty or premium. On May 2, 2022, the Company repaid in full all outstanding principal due under the Note in the amount of $100,000 and all interest payable in the amount of $1,375. The Company did not incur any early termination penalties as a result of the repayment of indebtedness and termination of the Note.

On September 28, 2021, the Company received a loan of $15,000 from Peter L. Coker, Sr., a shareholder of the Company. To evidence said loan, the Company issued to Mr. Coker a promissory note in the principal amount of $15,000 (in this case, the “Note”), with a maturity date of September 27, 2022. Interest on the Note accrued on the principal amount at the rate of six percent (6%) per annum, and was required to be paid on a quarterly basis, in the amount of $225 per quarter, on the following dates: December 28, 2021, March 28, 2022, June 28, 2022, and September 27, 2022. The Company was permitted to prepay any amounts due under the Note without penalty or premium. On March 29, 2022, the Company repaid in full all outstanding principal due under the Note in the amount of $15,000 and all interest payable in the amount of $225. The Company did not incur any early termination penalties as a result of the repayment of indebtedness and termination of the Note.

On October 27, 2021, the Company received a loan of $5,250 from Peter L. Coker, Sr., a shareholder of the Company. To evidence said loan, the Company issued to Mr. Coker a promissory note in the principal amount of $5,250 (in this case, the “Note”), with a maturity date of October 26, 2022. Interest on the Note accrued on the principal amount at the rate of six percent (6%) per annum, and was required to be paid on a quarterly basis, in the amount of $78.75 per quarter, on the following dates: January 27, 2022, April 27, 2022, July 27, 2022, and October 26, 2022. The Company was permitted to prepay any amounts due under the Note without penalty or premium. On May 2, 2022, the Company repaid in full all outstanding principal due under the Note in the amount of $5,250 and all interest payable in the amount of $7875. The Company did not incur any early termination penalties as a result of the repayment of indebtedness and termination of the Note.

On November 29, 2021, the Company received a loan of $8,500 from Fiesta Homes, LLC (“Fiesta”), which is controlled by a family member of a shareholder of the Company. To evidence said loan, the Company issued to Fiesta a promissory note in the principal amount of $8,500 (in this case, the “Note”), with a maturity date of November 29, 2022. Interest on the Note accrued on the principal amount at the rate of six percent (6%) per annum, and was required to be paid on a quarterly basis, in the amount of $127.50 per quarter, on the following dates: February 28, 2022, May 31, 2022, August 29, 2022, and November 29, 2022. The Company was permitted to prepay any amounts due under the Note without penalty or premium. On May 2, 2022, the Company repaid in full all outstanding principal due under the Note in the amount of $8,500 and all interest payable in the amount of $85. The Company did not incur any early termination penalties as a result of the repayment of indebtedness and termination of the Note.

On January 18, 2022, the Company received a loan of $15,000 from 12804 Morehead Investments, LLC (“Morehead”), which is controlled by a shareholder of the Company. To evidence said loan, the Company issued to Morehead a promissory note in the principal amount of $15,000 (in this case, the “Note”), with a maturity date of January 18, 2023. Interest on the Note accrued on the principal amount at the rate of six percent (6%) per annum, and was required to be paid on a quarterly basis, in the amount of $225 per quarter, on the following dates: April 18,2022, July 18, 2022, October 18,2022, and January 18, 2023. The Company was permitted to prepay any amounts due under the Note without penalty or premium. On May 2, 2022, the Company repaid in full all outstanding principal due under the Note in the amount of $15,000 and all interest payable in the amount of $263. The Company did not incur any early termination penalties as a result of the repayment of indebtedness and termination of the Note.

On March 1, 2022, the Company received a loan of $19,500 from Morehead, which is controlled by a shareholder of the Company. To evidence said loan, the Company issued to Morehead a promissory note in the principal amount of $19,500 (in this case, the “Note”), with a maturity date of March 1, 2023. Interest on the Note accrued on the principal amount at the rate of six percent (6%) per annum, and was required to be paid on a quarterly basis, in the amount of $292.50 per quarter, on the following dates: June 1, 2022, September 1, 2022, December 1, 2022, and March 1, 2023. The Company was permitted to prepay any amounts due under the Note without penalty or premium. On May 2, 2022, the Company repaid in full all outstanding principal due under the Note in the amount of $19,500 and all interest payable in the amount of $195. The Company did not incur any early termination penalties as a result of the repayment of indebtedness and termination of the Note.

On March 1, 2022, the Company received a loan of $20,000 from Peter L. Coker, Sr., a shareholder of the Company. To evidence said loan, the Company issued to Mr. Coker a promissory note in the principal amount of $20,000 (in this case, the “Note”), with a maturity date of March 1, 2023. Interest on the Note accrued on the principal amount at the rate of six percent (6%) per annum, and was required to be paid on a quarterly basis, in the amount of $300 per quarter, on the following dates: June 1,2022, September 1, 2022, December 1, 2022, and March 1, 2023. The Company was permitted to prepay any amounts due under the Note without penalty or premium. On May 2, 2022, the Company repaid in full all outstanding principal due under the Note in the amount of $20,000 and all interest payable in the amount of $200. The Company did not incur any early termination penalties as a result of the repayment of indebtedness and termination of the Note.

During the six months ended June 30, 2022, the Company recorded interest expense of $3,157 and repaid $4,353 of interest. During the six months ended June 30, 2021, the Company recorded interest expense of $3,088 and repaid $2,250 of interest.

As of June 30, 2022, and December 31, 2021, the outstanding balances of promissory note – related party and accrued interest were $0 and $0 and $128,750 and $1,196, respectively.

MED SPA VACATIONS INC. 10-Q