8. RELATED PARTY TRANSACTIONS
|6 Months Ended|
Sep. 30, 2020
|Related Party Transactions [Abstract]|
|RELATED PARTY TRANSACTIONS||
Accrued Payroll – Related Parties
Included in other accrued expenses on the accompanying consolidated balance sheet is approximately $84,000 owing to the President of the Company, and approximately $175,000, owing to a key employee (which includes $50,000 in both fiscal years, from consulting services prior to his employment) as of both September 30, 2020 and March 31, 2020. These amounts include both accrued payroll and accrued allowances and expenses.
NaturalShrimp Holdings, Inc.
On January 1, 2016 the Company entered into a notes payable agreement with NaturalShrimp Holdings, Inc.(“NSH”), a shareholder. Between January 16, 2016 and March 7, 2016, the Company borrowed $134,750 under this agreement. An additional $601,361 was borrowed under this agreement in the year ended March 31, 2017. The note payable has no set monthly payment or maturity date with a stated interest rate of 2%. As of September 30, 2020 and March 31, 2020 the outstanding balance is approximately $735,000. At September 30, 2020 and March 31, 2020, accrued interest payable was approximately $58,000 and $51,000, respectively.
The Company has entered into several working capital notes payable to multiple shareholders of NSH and Bill Williams, a former officer and director, and a shareholder of the Company, for a total of $486,500. The notes are unsecured and bear interest at 8%. These notes had stock issued in lieu of interest and have no set monthly payment or maturity date. The balance of these notes was $356,404 at September 30, 2020 and $426,404 at March 31, 2020, respectively, and is classified as a current liability on the consolidated balance sheets. At September 30, 2020 and March 31, 2020, accrued interest payable was approximately $140,000 and $240,000, respectively.
On July 15, 2020, the Company issued a promissory note to Ms. Williams in the amount of $383,604 to settle the amounts that had been recognized per the separation agreement with the late Mr. Bill Williams dated August 15, 2019 (Note 10) for his portion of the related party notes and related accrued interest discussed above, and accrued compensation and allowances. The note bears interest at one percent per annum, and calls for monthly payments of $8,000 until the balance is paid in full.
Beginning in 2010, the Company started entering into several working capital notes payable with various shareholders of NSH for a total of $290,000 and bearing interest at 8%. The balance of these notes at September 30, 2020 and March 31, 2020 was $54,647 and is classified as a current liability on the consolidated balance sheets.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef