v3.25.1
Convertible Notes
 3 Months Ended
Mar. 31, 2025
Convertible Notes [Abstract]  
Convertible Notes

9) Convertible Notes

 

A. L1 Capital

 

During the quarter ending March 31, 2025, the Company converted $875,000 principal and $315,865 towards interest and conversion fees on the L1 Capital convertible note.

 

Date  Loan   Conversion price   No of shares 
1/7/2025  $125,000    0.62    270,362 
2/3/2025   200,000    0.58    464,681 
2/14/2025   175,000    0.41    583,076 
2/18/2025   175,000    0.41    584,102 
2/21/2025   200,000    0.38    726,818 
Total  $875,000         2,629,039 

 

B. Pioneer Garage

 

During the quarter ending March 31, 2025, the Company repaid convertible note amounting to $1,500,000.

 

Convertible Note  March 31,
2025		   December 31,
2024		 
Short-term borrowing  $
           -
   $2,061 
Long-term borrowing   
-
    
-
 
Convertible note outstanding  $
-
   $2,061 

 

Convertible Note  March 31,
2025		   December 31,
2024		 
Convertible notes payable 1  $
        -
   $2,375 
Less: discount 2   
-
    314 
Notes payable, net of discount 1-2   
-
    2,061 
Notes payable, current portion, net of discount   
-
    2,061 
Notes payable, long-term portion, net of discount  $
-
   $
-
 

 

B. Common Stock Warrants

 

On December 28, 2023, the Company issued Senior Secured 15% Original Issue Discount Convertible Promissory Note for an initial amount of $2,000,000 of convertible notes with an annual interest rate of 18% and a maturity term of 18 months. In connection with this issuance, the Company also issued 357,500 warrants, each allowing the holder to purchase shares of the Company’s common stock at an exercise price of $3.44688, exercisable until December 28, 2028.

 

On December 28, 2023, the Company issued a convertible note to the investor in the principal amount of $2.0 million which resulted in gross proceeds to the Company of $1.7 million (the “First Tranche Note”) and Warrants to purchase up to an aggregate of 357,500 Warrant Shares (the “First Tranche Warrants”). The First Tranche Note, and the First Tranche Warrants have an initial fixed conversion and exercise price of $3.44688 per share, respectively, subject to adjustment. The First Tranche Warrants carry a 5-year term and, if not exercised, will terminate on December 28, 2028.

 

           Weighted     
       Weighted   Average     
       Average   Remaining   Aggregate 
   Number of   Exercise   Contractual   Intrinsic 
Warrants  Warrants   price   Term   value 
Outstanding on January 1, 2025   967,256   $7.99    3.05   $3,785 
Granted   
—
    
—
    
—
    
—
 
Excised   
—
    
—
    
—
    
—
 
Forfeited or expired   
—
    
—
    
—
    
—
 
Outstanding on March 31, 2025   967,256   $7.99    2.80   $3,785 
Exercisable on March 31, 2025   424,741   $7.99    2.57   $1,662 
           Weighted     
       Weighted   Average     
       Average   Remaining   Aggregate 
   Number of   Exercise   Contractual   Intrinsic 
Warrants  Warrants   price   Term   value 
Outstanding on January 1, 2024   967,256   $7.99    4.07   $3,785 
Granted   
—
    
—
    
—
    
—
 
Excised   
—
    
—
    
—
    
—
 
Forfeited or expired   
—
    
—
    
—
    
—
 
Outstanding on March 31, 2024   967,256   $7.99    3.82   $3,785 
Exercisable on March 31, 2024   231,290   $7.99    3.82   $1,144 

 

The following table summarizes the activities for our unvested warrants for the three months ended March 31, 2025.  

 

          Weighted
average Grant
Date Fair		  
    Number of
Warrants		     Value Per
warrant		  
Unvested on January 1, 2025     590,878     $ 3.51  
Granted     —       —  
Vested     (48,363 )     3.91  
Forfeited     —       —  
Unvested on March 31, 2025     542,515     $ 3.47  

 

The following table summarizes the activities for our unvested warrants for the year ended December 31, 2024.  

 

       Weighted
average Grant
Date Fair		 
   Number of
Warrants		   Value Per
warrant		 
Unvested on January 1, 2024   784,329   $3.91 
Granted   
—
    
—
 
Vested   (48,363)   3.91 
Forfeited   
—
    
—
 
Unvested on March 31, 2024   735,966   $3.91 

C. Short term borrowing

 

Particulars  March 31,
2025		   December 31,
2024		 
Short Term Borrowing        
Seacoast Business Funding  $775   $589 
Convertible note   
-
    2,061 
Total  $775   $2,650 

 

(i) Seacoast Business Funding

 

The Company obtained a credit facility from Seacoast business funding (SBF), a division of Seacoast National Bank during the year ended December 31, 2022. The funding is against the accounts receivable of the company and its subsidiary. The SBF facility incurs an interest rate 8.5% for the quarter ended March 31, 2025 and 8.9% for the quarter ended December 31, 2024. The value of invoices funded during the quarter ending March 31, 2025, was $1,938 and $2,022 for the quarter ending December 31, 2024. The maximum amount of advance under the purchase agreement is $10 million and the bank may advance upto 90% of the unpaid domestic outstanding accounts under the re-course agreement.

 

The balance as of March 31, 2025, is $775 and $589 for the period ending December 31, 2024.