Notes Payable, Related Parties |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| Debt Disclosure [Abstract] | |
| Notes Payable, Related Parties | Note 5: Notes Payable, Related Parties
Promissory notes dated November 6, 2016, with a principal amount of $13,516 are due and bear interest of 5% and are payable on demand. On December 31, 2024, $5,516 was repaid as part of a Debt Swap Agreement entered into with RWI including accrued interest of $2,507 (described in Note 3 and Note 16). The principal balance remaining is $8,000 with accrued interest to June 30, 2025, in the amount of $3,835.
In 2017 compensation was due to members of the executive management team in the amount of $312,000. In support of the growth of the Company, those executive team members agreed to defer receipt of payment by converting into loans that bear interest of 4%. $60,000 principal and accrued interest of $18,661 remains as of June 30, 2025.
On January 8, 2024, to alleviate the payables burden on the Company, executives agreed, and the Company issued three long-term promissory notes totaling $640,000. Each note is a two-year term, carrying an interest rate of 10% per annum. The notes can become convertible notes at a fixed conversion rate of $ per share if the Company and the holder both agree. On January 1, 2025, two notes totaling $622,000 plus accrued interest of $60,837 were converted into restricted common shares leaving one note remaining in the amount of $18,000. As of June 30, 2025, accrued interest for the remaining note was $2,653. All conversions were in accordance with the agreements and no gains or losses were recorded as part of the conversions.
Also on January 8, 2024, the Company, as part of a debt restructuring, issued four convertible promissory notes for payables owed to executives and management of the Company totaling $326,883 (see Note 4 for details). On January 1, 2025, two notes totaling $230,000 plus accrued interest of $22,496 were converted into restricted common shares leaving two notes remaining in the amount of $96,883. During the second quarter of 2025, $78,833 principal plus $8,378 accrued interest of the remaining notes was converted into common shares leaving one convertible promissory note in the amount of $18,000 with accrued interest of $2,653 at June 30, 2025 also discussed in Note 4.
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