Loans from Parent and Other Related Party Transactions |
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| Loans from Parent and Other Related Party Transactions |
Note 8 – Loans from Parent and Other Related Party Transactions
To fund the Company’s operations for the three months ended March 31, 2023 and 2022, the former Parent advanced funds and paid expenses of InnovaQor in the amount of $313,873 and $127,196, respectively. The amounts as of March 31, 2023, and December 31, 2022 are included in Due to Former Parent and Notes Payable in the accompanying Consolidated Balance Sheets.
During the three months ended March 31, 2022, Ms. Hollis, the former Chief Executive Officer of the Company, loaned the Company $84,100. The Company entered into a promissory note in the amount of $92,510, representing a 10% original issue discount. A payment of $93,010, representing full payment of the loan including interest outstanding, was made by the Company on May 12, 2023. In addition, the Company issued Ms. Hollis shares of Series C-1 Preferred Stock on March 31, 2022, in connection with this loan. These shares of Series C-1 Preferred Stock were valued at $15,250 using the Option Price Method and the same assumptions as used to value the prior issuance of Series C-1 Preferred Stock.
During the year ended December 31, 2022, Alcimede Limited loaned the Company $32,500. Seamus Lagan, the Chief Executive Officer of Rennova, is the sole director of Alcimede Limited. The Company entered into a promissory note in the amount of $35,750, representing a 10% original issue discount. During the year ended December 31, 2022, $12,554 of this loan was repaid. The loan is due on December 5, 2022 and is currently in default. The loan provides for default interest at 18% per annum.
The above amounts are not indicative of what third parties would have agreed to.
Related Parties Transactions
Included in net revenues for the three months ended March 31, 2023 and 2022 is $84,703 and $53,555, respectively, of related party revenue with Rennova (the former parent).
The Group has incurred certain costs that have been allocated from Rennova. Included in the Consolidated Statements of Operations are the following allocated costs:
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