12. LONG TERM LOAN

In December 2020, the Company entered into a loan agreement with Alterna Bank for a principal amount of $27,799 (CAD$40,000) (December 31, 2024 - $30,243 (CAD$40,000)) under the Canada Emergency Business Account Program (the “Program”). The Program, as set out by the Government of Canada, requires that the funds from this loan shall only be used by the Company to pay non-deferrable operating expenses including, without limitation, payroll, rent, utilities, insurance, property tax and regularly scheduled debt service, and may not be used to fund any payments or expenses such as prepayment or refinancing of existing indebtedness, payments of dividends, distributions and increases in management compensation. The loan was interest free during the initial term, which ended on January 18, 2024. The outstanding loan after the initial term bears interest at a rate of 5% per annum, payable monthly until the maturity date, December 31, 2026.

In April 2021, the Company applied for an additional loan with Alterna Bank under the Program and received $13,900 (CAD$20,000) (December 31, 2024 - $15,122 (CAD$20,000)). The additional loan is subject to the original terms and conditions of the Program.

On November 14, 2025, the Company repaid the total outstanding loan balance of $42,787 (CAD $60,000) plus accrued and unpaid interest of $2,939 (CAD $4,121).