The notes payable balance consists of the following:


Total notes payable, net at January 1, 2022	$	2,154,098
Accretion of discount		2,148
Total notes payable, net at March 31, 2022	$	2,156,246
Accretion of discount		3,979
Total notes payable, net at June 30, 2022	$	2,160,225
Accretion of discount		4,026
Total notes payable, net at September 30, 2022	$	2,164,251

The senior secured debt bears interest at prime plus 0.75% and had an original maturity date of June 30, 2021. In connection with the June Offering, we entered into the Loan Extension Letter Agreement on June 2, 2021 which provided for an extension of the maturity date on Hale Capital’s portion of the outstanding indebtedness owed under the Amended and Restated Loan Agreement to June 30, 2023. The amount extended constituted approximately $2.2 million of the $3.5 million principal amount outstanding as of June 2, 2021. The remaining $1.3 million of the outstanding principal, which was owed to other lenders, was repaid in full on June 30, 2021. On July 19, 2022, we entered into the "Second Loan Extension Letter Agreement" that provided for a subsequent extension of the maturity date on the outstanding indebtedness owed under the Amended and Restated Loan Agreement from June 30, 2023 to December 31, 2023. The Company concluded the extension resulted in a debt modification under ASC 470-50, Modifications and Extinguishments, and therefore no gain or loss was required to be recognized. The change is accounted for prospectively using the new effective interest rate of the loan.

As of September 30, 2022, the Company was in compliance with the financial covenants contained in the Amended and Restated Loan Agreement.