Notes Payable |
Note
7 –Notes Payable
Notes
payable consists of the following at September 30, 2024 and 2023, respectively:
Schedule of Notes Payable
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September 30, 2024 | | |
September 30, 2023 | |
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| | |
| |
On September 10, 2021, the Company issued a Secured Promissory note in the principal amount of $675,000 to US Canna Lab I, LLC (the “Canna Lab Note”). The Canna Lab Note carries interest at 12% per annum and is due on September 10, 2024, with monthly principal and interest payments of $22,419.66 beginning on October 1, 2021. In addition, the Company was advanced an additional $115,000 of funds during the year ended September 30, 2022 under the same terms as the original Canna Lab Note. During the year ended September 30, 2022, the Company repaid $125,000 of the principal balance on the note. As a result of the Company not meeting the monthly payment obligations, the Canna Lab Note is in technical default, however, no default notice has been provided by Canna Lab as of the date of this filing. There are no additional obligations of the Company under default with the exception of being due on demand. On February 27, 2024, the Company repaid the note and related accrued interest in full. | |
$ | - | | |
$ | 565,000 | |
| |
| | | |
| | |
Total notes payable | |
| - | | |
| 565,000 | |
Less: current maturities | |
| - | | |
| (565,000 | ) |
Notes payable | |
$ | - | | |
$ | - | |
The
Company recorded interest expense pursuant to the stated interest rate and closing costs on the notes payable in the amount of $36,614
and $79,800 during the years ended September 30, 2024 and 2023.
Notes
payable – discontinued operations
On December 26, 2019, the Company financed the purchase of $377,124 of lab equipment, in part, with the proceeds of a bank loan in the amount of $291,931. The loan bears interest at the rate of 5.75% per annum and requires monthly payments of $5,622 over the five-year term of the loan ending on December 26, 2024. The Company’s obligations under this loan are secured by a lien on the purchased equipment. | |
$ | - | | |
$ | 80,428 | |
|