Annual report pursuant to Section 13 and 15(d)

Notes Payable

v3.23.1
Notes Payable
12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Notes Payable

Note 7 – Notes Payable

 

The carrying amount of notes payable as of December 31, 2022 and 2021 was as follows:

 

   

December 31,

2022

   

December 31,

2021

 
Note payable with the Department of Economic and Community Development in the original amount of $147,372 due in monthly payments of principal and interest totaling $2,132 beginning January 1, 2017, with a final payment due on October 1, 2022. Non-interest bearing. Payments were not made in 2022 or 2021.   $ 134,153     $ 134,153  
                 
Loans from Related Parties and Companies due September 2022 and June 2023. Original issue discount of $160,608, 25 shares of Series C-1 Preferred Stock issued in connection with the loan; unamortized debt discount of $134,855 at December 31, 2022. $115,906 in default at December 31, 2022   1,438,269      
                 
Paycheck Protection Program Loans (PPP Loans). The PPP Loans and accrued interest are forgivable as long as the Company uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will be reduced if the Company terminates employees or reduces salaries. No collateral or guarantees were provided in connection with the PPP Loans. The unforgiven portion of the PPP Loans are payable over two years at an interest rate of 1.0% per annum, with a deferral of payments for the first sixteen months. Beginning sixteen months from the dates of issuance, the Company is required (if not forgiven) to make monthly payments of principal and interest to the lenders. The Company intends to use all of the proceeds for purposes consistent with the PPP. While the Company currently believes that its use of the loan proceeds will meet the conditions for forgiveness of the loans, it cannot assure you that it will not take actions that could cause the Company to be ineligible for forgiveness of the loans, in whole or in part.   60,401     60,401  
Notes payable   1,632,823     194,554  
Less current portion   1,572,422     134,153  
Notes payable, long term, net of current portion   $ 60,401     $ 60,401  

 

 

During the year ended December 31, 2021, approximately $104,000 of Paycheck Protection Program Loans were forgiven and are recognized as other income in the accompanying financial statements. The Company has applied for forgiveness of the remaining $60,401 of these type loans.