DEBT |
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| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DEBT | NOTE 11 – DEBT
Convertible Notes
The Company uses the Black-Scholes Model to calculate the derivative value of its convertible debt. The valuation result generated by this pricing model is necessarily driven by the value of the underlying common stock incorporated into the model. The values of the common stock used were based on the price at the date of issue of the debt security as of March 31, 2025 and 2024. In 2024 management determined the expected volatility of 106.90%, a risk-free rate of interest of 5.48%, and contractual lives of the debt of three months. In 2024 management determined the expected volatility of 140.30%, a risk-free rate of interest of 4.73%, and contractual lives of the debt of three months. Management made the determination to use an expected life rather than contractual life for the calculations for the matured debt as of March 31, 2025 and 2024.
As of March 31, 2025 and, 2024, there was $0 and $166,650 of convertible debt principal outstanding. During the three months ended March 31, 2025 and 2024, $0 and $0 of the debt discount was amortized.
The summary of convertible notes are:
The table below details the Company's outstanding convertible notes and related derivative liability:
During the three months ended March 31, 2025 and 2024, change in fair value of the derivative liability was $57,235 and $51,723, respectively. The following is a summary of the derivative liability:
Notes Payable
On August 27, 2024, the Company entered into a promissory note for a principal of $67,200, which was funded on August 30, 2024. The note bears interest at a rate of 12% per annum and matures after nine months.
On November 20, 2024, the Company entered into a promissory note for a principal of $67,860, which was funded on December 2, 2024. The note bears interest at a rate of 15% per annum and matures after nine months.
Loans Payable
The Company’s RI and WS subsidiaries have various loans including Small Business Association (“SBA”) Economic Injury Disaster Loan (“EIDL’) loans, lines of credit and other advances. The loans bear interest with varying rates up to 9.25% per annum. The following is a summary of the loans payable at March 31, 2025 and December 31, 2024:
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