9. LOANS PAYABLE |
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| 9. LOANS PAYABLE | 9.LOANS PAYABLE
The Company’s loans payable comprises revolving lines of credit, promissory notes, acquisition-related notes payable, SBA loans and convertible debentures. Certain loans are with related parties. Related party balances and transactions are further disclosed in Note 15.
Loan balances outstanding at year end are as follow:
Key terms of significant Loans
The Epazz, Inc. convertible line of credit provides for borrowings up to $400,000 USD, bears interest at 6% per annum and expires on December 31, 2025. There were no amounts outstanding under this facility as of December 31, 2025 or December 31, 2024.
During 2025, the Company repaid the Propal Investments, LLC loan in full. The outstanding balance as of December 31, 2025 was $nil.
During 2025, the Company repaid the TD Bank – LOC (PsPortals) in full. The outstanding balance as of December 31, 2025 was $nil.
Convertible debt
Certain debts can be converted into the Company’s Common Stock at a 20% discount (10% in case of Othership conversion). The total number of shares issuable for convertible debt is 1,694,090 as of December 31, 2025. This assumes all potentially convertible debt was converted as of December 31, 2025. Other assumptions include a common stock market price of $3.20 USD or $4.392 per share on December 31, 2025, and a USD to Canadian dollar conversion rate $1.3726 as listed on https://www.wsj.com/market-data/quotes/fx/USDCAD/historical-prices on that date.
See table below for debt itemization. All amounts are in CAD in the table below.
The above calculation is based on the Company’s common share market price and exchange rate at December 31, 2025 and assumes conversion of all potentially convertible debt at that date.
Below listed lenders shall have an option to convert all or part of the balance into ZenaTech, Inc. preferred shares with a stated value of $3.00 or convert into ZenaTech, Inc. common stock at the last valuation of price per share or the lowest price traded within the last 30 days. Lenders have the option to convert all or part of the balance into ZenaTech common stock at twenty percent (20%) discount of the last valuation of share price or the lower price issued within the last 30 days. The conversion price is the price after applying the twenty percent (20%) discount off the market price. (10% in case of Othership conversion). The Company adjusts each month the derivatives for the conversions and the derivative finance expense.
The derivative financial liabilities as of December 31, 2025 were as follows:
During the year ended December 31, 2025, the Company recognized a derivative finance expense of $ 18,112,444 (Previous year $712,651) in profit or loss. |