Quarterly report pursuant to Section 13 or 15(d)

Note 9 - Subsequent Events

Note 9 - Subsequent Events
6 Months Ended
Jun. 30, 2022
Notes to Financial Statements  
Subsequent Events [Text Block] NOTE 9 - SUBSEQUENT EVENTS



Management has evaluated subsequent events pursuant to the requirements of ASC Topic 855, from the balance sheet date through the date the financial statements were issued, and other than the below, has determined that no material subsequent events exist.


On July 19, 2022, Starco Brands, Inc. (the "Company") and Ross Sklar, its Chief Executive Officer ("Sklar"), agreed to amend and restate a promissory note issued in favor of Ross Sklar on January 24, 2022 (the "Old Note"). Sklar agreed to extend the term of the Old Note through the entry into a First Amended and Restated Promissory Note (the "Amended Note") in exchange for the Company paying the accrued and unpaid interest under the Old Note, including during the period following maturity date of the Old Note ( January 24, 2022 to July 19, 2022). In exchange for extending the term, Sklar waived the default interest rate of ten percent (10%) and agreed to interest accrual at the standard four percent (4%) rate during the period following maturity.


The Amended Note carries a guaranteed 4% interest rate, matures on July 19, 2023, and has a 10% interest rate on a default of repayment at maturity. The Company, at its option, may prepay the Promissory Note, in whole or in part, without prepayment penalty of any kind, and the obligations under the Amended Note will accelerate in full upon an Event of Default.