Notes payable at December 31, 2022 and 2021, respectively, are summarized as follows: 

Long-term debt matures as follows: 

Loans and Notes Payable – Unrelated Party

On March 12, 2009, the Company issued a debenture in the principal amount of $20,000. The debenture bore interest at 12% per year and matured on September 12, 2009. The Company assigned all of its receivables from consumer activations of the rewards program as collateral on this debenture. The balance of the debenture was $10,989 at December 31, 2022 and 2021. The accrued interest of the debenture was $6,229 and $4,910 at December 31, 2022 and 2021, respectively.

On September 7, 2011, the Company issued a promissory note in the principal amount of $50,000. The note bore interest at 8% per year and matured on September 7, 2016. Effective March 29, 2021, the principal balance of $50,000 and accrued interest of $37,282 were converted into 61,830 shares of series B preferred stock.

On November 17, 2011, the Company issued a promissory note in the principal amount of $50,000. The note bore interest at 8% per year and matured on November 17, 2016. Effective March 29, 2021, the principal balance of $50,000 and accrued interest of $36,505 were converted into 60,606 shares of series B preferred stock.

On March 11, 2009, the Company issued a promissory note in the principal amount of $15,000. The note bore interest at 12% per year and matured on April 29, 2014. Effective March 29, 2021, the principal balance of $15,000 and accrued interest of $19,465 were converted into 13,860 shares of series B preferred stock.

On September 9, 2019, the Company issued a promissory note in the principal amount of $410,000. The note bore interest at 10% per year and matured on September 9, 2020. On November 10, 2020, the Company entered into addendum No. 1 to the note extending the maturity date until December 31, 2021. On May 4, 2021, the Company entered into addendum No. 2, whereby the maturity date was extended to November 3, 2021, accrued interest of $22,266 was added to the principal balance of $410,000 resulting in a new principal balance of $432,266, and the interest rate was increased to 24%. This note was consolidated to Note 40-1 on September 22, 2022 (see Note 9). The principal balance of the note was $0 and $432,266 at December 31, 2022 and 2021, respectively. The accrued interest of the note was $0 and $137,345 at December 31, 2022 and 2021, respectively.

Paycheck Protection Program (“PPP”) Loans

On April 14, 2020, the Company obtained a PPP loan in the principal amount of $127,400 with an interest rate of 1% and a maturity date of April 14, 2022. This loan was forgiven in 2021 as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) and was recognized as a gain from forgiveness of debt in the amount of $128,640 recorded in other income and expenses in the consolidated statement of operations during the year ended December 31, 2021.

On May 8, 2020, the Company obtained a PPP loan in the principal amount of $257,500 with an interest rate of 1% and a maturity date of May 8, 2022. This loan was forgiven in 2021 as part of the CARES Act and was recognized as a gain from forgiveness of debt in the amount of $261,675 recorded in other income and expenses in the consolidated statement of operations during the year ended December 31, 2021.

On February 19, 2021, the Company obtained a PPP loan in the principal amount of $229,500 with an interest rate of 1% and a maturity date of February 19, 2023. This loan was forgiven in 2021 as part of the CARES Act and was recognized as a gain from forgiveness of debt in the amount of $231,374 recorded in other income and expenses in the consolidated statement of operations during the year ended December 31, 2021.

On February 23, 2021, the Company obtained a PPP loan in the principal amount of $117,550 with an interest rate of 1% and a maturity date of February 23, 2023. This loan was forgiven in 2021 as part of the CARES Act and was recognized as a gain from forgiveness of debt in the amount of $118,130 recorded in other income and expenses in the consolidated statement of operations during the year ended December 31, 2021.

Small Business Administration (“SBA”) Loans

On June 2, 2020, the Company obtained an SBA loan in the principal amount of $150,000 with an interest rate of 3.75% and a maturity date of June 2, 2050. The principal balance and accrued interest at December 31, 2022 was $144,609 and $5,723, respectively, and principal and accrued interest at December 31, 2021 was $147,677 and $5,723, respectively.

On October 7, 2020, Key Tax obtained an SBA loan in the principal amount of $150,000 with an interest rate of 3.50% and a maturity date of October 7, 2050. On August 31, 2021, this SBA loan was amended to add an additional $200,000 of principal to the original note and the interest rate was increased to 3.75%. The principal and accrued interest at December 31, 2021 was $349,900 and $9,608, respectively. Key Tax was divested on December 31, 2021 and this loan was eliminated.

On April 12 and June 16, 2020, the Company obtained SBA loans totaling $20,000 with an interest rate of 5% and maturity dates one year from advance, if not forgiven. This was the grant a part of the EIDL loan and was recognized as other income in the amount of $10,000 recorded in other income and expenses in the consolidated statement of operations during the year ended December 31, 2022 and 2021, accordingly. The principal balance and accrued interest at December 31, 2022 were both $0 and principal and accrued interest at December 31, 2021 was $10,000 and $860, respectively.