v3.25.2
Notes Payable, Related Party Notes Payable, Convertible Bridge Loans Payable, Revenue Financing Arrangements and Bridge Loan Payable
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Notes Payable, Related Party Notes Payable, Convertible Bridge Loans Payable, Revenue Financing Arrangements and Bridge Loan Payable

Note 3 – Notes Payable, Related Party Notes Payable, Convertible Bridge Loans Payable, Revenue Financing Arrangements and Bridge Loan Payable

 

Notes payable are generally nonrecourse and secured by all Company owned assets.

 

               
   Interest
Rate		  June 30,
2025		  December 31,
2024
Notes Payable and Convertible Notes Payable               
                
In December 2020, the Company entered into a 56- month loan with a company in the amount of $1,578,237. The loan requires payments of 3.75% through November 2022 and 4.00% through September 2025 of the previous month’s revenue. Note is due September 2025. Note is guaranteed by a related party see note 6.   17%  $170,620   $195,927 
                
In April 2021, the Company entered into two six-month loans in the amount of $84,000 each. The loan had an original maturity of October 2021 with principal and interest due at maturity. The loan was exchanged to Series B Preferred stock in June 2025.   7%   —    168,000 
                
In May 2021, the Company entered into a six-month loan with an individual in the amount of $50,000. The loan had an original maturity of October 2021 with principal and interest due at maturity. The loan was exchanged to Series B Preferred stock in June 2025.   7%   —    50,000 
                
In May 2021, the Company entered into a six-month loan with an individual in the amount of $10,000. The loan had an original maturity of October 2021 with principal and interest due at maturity. The loan was extended to October 31, 2024. The note was in default.   7%   10,000    10,000 
                
In August 2022, the Company entered into a 56-months auto loan in the amount of $45,420.   2.35%   18,472    23,372 
                
In December 2022, the Company entered into various eighteen-month loans with individuals totaling $4,000,000. The notes included 100% warrant coverage. The loans mature in June 2024 with principal and interest due at maturity with conversion price of $1.00 per share. The loans were exchanged to Series B Preferred stock in June 2025.   12%   —    2,600,000 
                
In December 2022, the Company entered into an eighteen-month loan with an individual in the amount of $1,000,000. The notes included 100% warrant coverage. The loan was exchanged to Series B Preferred stock in June 2025.   12%    —    1,000,000 

 

In May 2023, the Company entered into various eighteen-month loans with individuals totaling in the amount of $800,000. The notes included 50% warrant coverage. The loans mature in November 2024 with principal and interest due at maturity with conversion price of $1.00 per share. The loans were exchanged to Series B Preferred stock in June 2025.   12%   —    800,000 
                
In June 2023, the Company entered into various eighteen-month loans with individuals totaling in the amount of $350,000. The notes included 50% warrant coverage. The loans mature in December 2024 with principal and interest due at maturity with conversion price of $1.00 per share. The loans were exchanged to Series B Preferred stock in June 2025.   12%   —    100,000 
                
In July 2023, the Company entered into a twelve-month loan with an individual in the amount of $100,000. The note included 50% warrant coverage. The loan matures in January 2025 with principal and interest due at maturity with conversion price of $1.00 per share. The loan was exchanged to Series B Preferred stock in June 2025.   12%   —    100,000 
                
In August 2023, the Company entered into a twelve-month loan with an individual in the amount of $300,000. The convertible note included the issuance of 150,000 shares of common stocks. The loan matures in August 2024 with principal and interest due at maturity with conversion price of $0.85 per share and is non-interest bearing.   —%   43,000    43,000 
                
In October 2023, the Company entered into a three-month loan with an individual in the amount of $500,000. The loan matures in January 2024 with principal and interest due at maturity. The loan was extended to June 2025.   10%   500,000    500,000 
                
In October 2023, the Company entered into a loan with an individual in the amount of $130,000. The loan requires payment of 17% of daily Shopify sales.   —%   58,612    66,278 
                
In October 2023, the Company entered into a eighteen-month loan with individuals totaling in the amount of $1,250,000. The note included 100% warrant coverage. The loan matures in April 2025 with principal and interest due at maturity with conversion price of $1.00 per share. The loan was fully converted to common stock in January 2025   12%   —    1,143,449 

 

 

In January 2024, the Company entered into a 18-month loan with an individual in the amount of $250,000. The note included 100% warrant coverage. The loan had a maturity of July 2025 with principal and interest due at maturity with conversion price of $0.50 per share. The loan was exchanged to Series B Preferred stock in June 2025.   12%   —    250,000 
                
In February 2024, the Company entered into a 18-month loan with an individual in the amount of $150,000. The note included 100% warrant coverage. The loan had a maturity of August 2025 with principal and interest due at maturity with conversion price of $0.40 per share. The loan was exchanged to Series B Preferred stock in June 2025.   12%   —    150,000 
                
In February 2024, the Company entered into a 6-month loan with an individual in the amount of $315,000. The note included 60% warrant coverage. The loan had a maturity of August 2024 with principal and interest due at maturity with conversion price of $0.38 per share. The loan was exchanged to Series B Preferred stock in June 2025.   12%   —    315,000 
                
In February 2024, the Company entered into a 18-month loan with an entity in the amount of $250,000. The note included 100% warrant coverage. The loan matures in August 2025 with principal and interest due at maturity with conversion price of $0.46 per share. The loan was exchanged to Series B Preferred stock in June 2025.   12%   —    250,000 
                
In April 2024, the Company entered into a commercial financing agreement in the amount of $815,000 and will be paid weekly until the loan is paid in full. The loan was in default.   —%   372,335    357,127 
                
In May 2024, the Company entered into an eighteen-month loan with individuals totaling in the amount of $1,850,000. The note included warrant coverage. The loan matures in November 2026 with principal and interest due at maturity with conversion price of $0.40 per share. The loan was exchanged to Series B Preferred stock in June 2025   —%   —    1,850,000 
                
In June 2024, the Company entered into a revenue purchase agreement in the amount of $250,000. 4% of revenue will be paid weekly until the loan is paid in full.   —%   130,639    181,341 
                
In July 2024, the Company entered into a revenue purchase agreement in the amount of $178,250. The loan matures in April 2025. The loan was fully converted to Common Stock in January 2025.   22%   —    91,999 

 

In July 2024, the Company entered into a revenue purchase agreement in the amount of $120,750. The loan matures in May 30, 2025. The loan was fully converted to Common Stock in January 2025   22%   —    120,750 
                
In August 2024, the Company entered into a 5-year loan with individuals totaling in the amount of $500,000. The loan matures in September 2029 with principal and interest due at maturity with conversion price of $0.35 per share. The loans were exchanged to Series B Preferred stock in June 2025.   9%   —    500,000 
                
In August 2024, the Company entered into a eighteen-month loan with individuals totaling in the amount of $1,400,000. The loan matures in February 2026 with principal and interest due at maturity with conversion price of $0.38 per share. $800,000 was exchanged to Preferred stock in June 2025.   12%   —    1,400,000 
                
In August 2024, the Company entered into a eighteen-month loan with individuals totaling in the amount of $100,000. The loan matures in September 2025 with principal and interest due at maturity with conversion price of $0.38 per share. The loan was exchanged to Series B Preferred stock in June 2025.   12%   —    100,000 
                
In September 2024, the Company entered into a merchant cash advance agreement in the amount of $325,000 to be paid weekly until the loan is paid in full.   —%   65,861    82,261 
                
In September 2024, the Company entered into an agreement with individuals totaling in the amount of $590,000. $290,000 was exchanged to Series B Preferred stock in June 2025   —%   300,000    590,000 
                
In October 2024, the Company entered into an agreement with individuals totaling in the amount of $950,000. There is no stated maturity, the proceeds of which are to be used for a future acquisition.   —%   950,000    950,000 
                
In November 2024, the Company entered into a merchant cash advance agreement in the amount of $340,000 to be paid weekly until the loan is paid in full. The loan was in default.   —%   311,713    311,713 
                
In December 2024, the Company entered into a merchant cash advance agreement in the amount of $111,300 to be paid weekly until the loan is paid in full.   —%   —    111,300 

 

In December 2024, the Company entered into a twelve-month loan with an individual in the amount of $500,000. The loan matures in December 2025 with principal and interest due at maturity.   12%   225,000    225,000 
                
In January 2025, the Company entered into a 12-month loan with individuals in the amount of $350,000. The note included 100% warrant coverage. The loan had a maturity of January 2026 with principal and interest due at maturity with conversion price of $0.25 per share. The loans of $150,000 were exchanged to Series B Preferred stock in June 2025.   12%   200,000    — 
                
In January 2025, the Company entered into a 18-month loan with individuals in the amount of $225,000. The note included 100% warrant coverage. The loan had a maturity of June 2026 with principal and interest due at maturity with conversion price of $0.25 per share. The loans were exchanged to Series B Preferred stock in June 2025.   12%   —    — 
                
In January 2025, the Company entered into a convertible promissory note in the amount of $156,000. The loan had a maturity of November 2025 with principal and interest due at maturity.   8%   156,000    — 
                
In January 2025, the Company entered into a promissory note in the amount of $150,650. The loan had a maturity of November 2025 with 1st payment in July 2025.   22%   150,650    — 
                
In April 2025, the Company entered into a senior convertible note in the amount of $200,000 with conversion price of $1.25 per share. The loan had a maturity of April 2030 with 125,000 5-year warrants exercisable at $2.00, and 83,334 5-year warrants exercisable into common stock at $3.00   15%   200,000    — 
                
                
    Total notes payable   $3,862,902   $14,635,517 
                
    Less notes discount    (217,906)   (3,031,917)
    Less current portion    (3,592,462)   (9,632,505)
                
    Long-term notes payable   $52,534   $1,971,095 

 

Interest expense on notes payable was $625,047 and $607,903 for the three months ended June 30, 2025 and 2024, respectively. Interest expense on notes payable was $1,262,392 and $1,130,480 for the six months ended June 30, 2025 and 2024, respectively. Accrued interest amounted to $2,214,868 as of June 30, 2025.

 

The Company recognized approximately $674,962 and approximately $1,013,815 of interest expense attributable to the amortization of the debt discount during the three months ended June 30, 2025 and 2024, respectively. The Company recognized approximately $1,653,683 and approximately $1,900,656 of interest expense attributable to the amortization of the debt discount during the six months ended June 30, 2025 and 2024, respectively. As of June 30, 2025, and December 31, 2024, the balance of the unamortized debt discount was $217,906 and $2,859,430 respectively.

 

               
   Interest Rate  June
30, 2025		  December 31, 2024
Shareholder Notes Payable              
               
In February 2023, we entered into a loan with an individual in the amount of $200,000. The annual interest rate is 12%. The loan was exchanged to Preferred stock in June 2025.   12%   —    200,000 
                
    Less current portion    (0)   (200,000)
                
    Long-term notes payable   $—   $— 

 

Interest expense on related party notes payable was $6,000 for the three months ended June 30, 2025 and 2024, respectively. Interest expense on related party notes payable was $12,000 for the six months ended June 30, 2025 and 2024, respectively. The Company’s effective interest rate was 20.63% for the six months ended June 30, 2025.

 

As of June 30, 2025, the Company’s convertible note balances are convertible into 167,500 shares of common stock