v3.23.1
Notes Payable (Details) - USD ($)
Mar. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]    
Notes Payable $ 1,029,264 $ 929,131
Secured Royal Participation Agreement [Member]    
Debt Instrument [Line Items]    
Notes Payable [1] 0 150,000
Vehicle And Equipment Loans [Member]    
Debt Instrument [Line Items]    
Notes Payable [2] 9,949 11,246
Notes Payable [Member]    
Debt Instrument [Line Items]    
Notes Payable [3] 280,000 285,000
Convertible Notes Payable [Member]    
Debt Instrument [Line Items]    
Notes Payable [4] $ 739,315 $ 482,885
[1] During June 2018, the Company entered into two (2) Secured Royalty Participation Agreements with Profile Solutions, Inc. (“PSI”) in exchange for working capital loans totaling $150,000. The loan amounts were due in June of 2019, plus an IRR of 18%. In consideration of these loan obligations, The Company agreed to pay a monthly royalty for one year being the greater of: x) 10% of the loan amount or y) 1.5% of the monthly gross revenues. PSI claims that these loans are in default, but the Company contends the loans reflected the terms of these agreements were usurious and contends that the loans are not legally enforceable obligations. This case was dismissed by the Court March 16, 2023. (See Legal Part I, 3.1)
[2] In 2019, Malaysia borrowed $27,295 to purchase a car. The note accrues interest at 4.42% and matures in 5 years with a balance due as at March 31, 2023 of $9,949 (December 31, 2022 - $11,246).
[3] In 2019, the Company entered into various promissory notes with lenders in the aggregate principal balance of $375,000. The effective interest rates of the notes are 10% and mature within one year. In addition, the Company issued 45,000 shares of common stock in the aggregate for the commitment of resulting in a charge of $22,500 to debt discount. In 2020, the Company entered into various promissory notes with lenders in the aggregate principal balance of $225,000 with effective interest rates between 8% and 10% per annum. Each of these notes was extended until May 31, 2023. On October 20, 2021, The Company issued two promissory notes to investors for a total of $10,000. One of these notes was paid in full on January 18, 2023. The other has been extended until May 20, 2023. The outstanding balance of these notes was $280,000 and $285,000 as of March, 31, 2023 and December 31, 2022, respectively.
[4] During the year ended December 31, 2021, the Company issued an aggregate of $2,423,738 of convertible promissory notes to investors. The notes had maturity dates between nine months and three years and have interest rates between 8% and 12% per annum. The Company also issued 154,173 shares of common stock and granted warrants to purchase 2,400,000 shares of common stock with exercise prices ranging between $2.685 and $3.00 per share. The value of the common stock and warrants were recorded as a discount of the note at fair value.