| Notes Payable |
5. Notes
Payable
The following table summarizes
notes payable as of March 31, 2025 and 2024:
| Schedule of notes payable |
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| Type |
|
Original Amount |
|
|
Origination Date |
|
Maturity Date |
|
Annual Interest Rate |
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|
Balance at March 31, 2025 |
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|
Balance at December 31, 2024 |
|
| Note Payable** (a) |
|
$ |
50,000 |
|
|
11/18/2019 |
|
5/22/2020 |
|
|
5% |
|
|
$ |
50,000 |
|
|
$ |
50,000 |
|
| Note Payable** (b) |
|
$ |
27,000 |
|
|
05/20/2020 |
|
4/20/2022 |
|
|
1% |
|
|
$ |
5,282 |
|
|
$ |
5,768 |
|
| Note Payable** (c) |
|
$ |
25,000 |
|
|
10/20/2022 |
|
4/24/2023 |
|
|
5% |
|
|
$ |
25,000 |
|
|
$ |
25,000 |
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| |
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| |
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Balance |
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|
$ |
80,282 |
|
|
$ |
80,768 |
|
| |
|
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Less current portion |
|
|
$ |
(80,282 |
) |
|
$ |
(80,768 |
) |
| |
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Total long-term |
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|
$ |
— |
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|
$ |
— |
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** Currently in default
| (a) |
|
On November 18, 2019, the Company executed a note payable to an individual in the amount of $50,000, interest accrues at 5% per annum, unsecured, and due after six months of execution, or the date in which the Company secures one million dollars in total investment capital, whichever occurs first. On May 14, 2020 $1,250 of accrued interest was paid. |
| (b) |
|
On May 5, 2020, the Company received loan proceeds in the amount of $27,000 from Bank of America (the “Lender”) under the Paycheck Protection Program (“PPP”). The PPP, established as part of the Coronavirus Aid, Relief and Economic Security Act (“CARES Act), provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loan matures on April 20, 2022 and bears an interest rate of 1.00% fixed per annum, payable monthly commencing on October 20, 2020. The loan is forgivable if the proceeds are used for eligible purposes. We have used the entire loan amount for qualifying expenses and the forgiveness is pending the completion of the application. The Company received a $6,250 courtesy credit from the lender on September 15, 2021. As of March 31, 2025 and December 31, 2024 , the loan balance was $5,282 and $5,768, respectively. The monthly payment beginning October 4, 2021 is $3,433. The Company has submitted the application for forgiveness of the PPP Loan in accordance with the terms of the CARES Act and are in discussions with Bank of America (the lender). During the loan forgiveness process, repayment is temporarily deferred for borrowers until the SBA remits the final loan forgiveness amount to the lender. If granted full forgiveness, Bank of America confirmed that interest and penalties would be removed along with the principal of the loan. |
| (c) |
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On October 20, 2022, the Company executed a note payable to an individual in the amount of $25,000, interest accrues 5% per annum, unsecured, and due date one year after execution, or the date in the which the company seems one million in total investment capital, whichever occurs first |
The Company had total accrued interest for related
party and non-related party notes payable of $16,493 and $15,568 which is included in accounts payable and accrued expenses, as of March
31, 2025 and December 31, 2024, respectively.
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