| Long-Term Debt and Other Short-Term Borrowings |
Note 9. Long-Term Debt and Other Short-Term Borrowings Long-term debt and other short-term borrowings consisted of the following at March 31, 2026 and December 31, 2025: | | March 31, 2026 | | | December 31, 2025 | | | | | | | | | Long-term debt: | | | | | | | | | | | | | | Note payable to Discover, pursuant to a Secured Promissory Note dated December 24, 2021 and funded on January 3, 2022 in the original amount of $26,315,789 with interest and principal due at maturity on January 1, 2027. The note bears interest at a rate of 3.25% as of the effective date and is secured by lien on substantially all of the Company’s assets. | | $ | 26,315,789 | | | $ | 26,315,789 | | | | | | | | | | | Note payable to Discover pursuant to a 10.0% Secured Promissory Note dated April 23, 2021 in the original amount of $2,500,000 with interest and principal due at maturity on January 1, 2027. Pursuant to an amendment dated December 24, 2021 the interest rate was adjusted to 3.25% as of the amendment date. The note is secured by a lien on substantially all of the Company’s assets. | | | 2,500,000 | | | | 2,500,000 | | | | | | | | | | | Note payable to Discover, pursuant to a 10.0% Secured Promissory Note dated December 22, 2020 in the original amount of $12,000,000 with interest and principal due at maturity on January 1, 2027. Pursuant to an amendment dated December 24, 2021 the interest rate was adjusted to 3.25% as of the amendment date. The note is secured by a lien on substantially all of the Company’s assets. | | | 12,000,000 | | | | 12,000,000 | | | | | | | | | | | Note payable to Discover, pursuant to a 10.0% Secured Promissory Note dated December 11, 2020 in the original amount of $6,000,000 with interest and principal due at maturity on January 1, 2027. Pursuant to an amendment dated December 24, 2021 the interest rate was adjusted to 3.25% as of the amendment date. The note is secured by a lien on substantially all of the Company’s assets. | | | 6,000,000 | | | | 6,000,000 | | | | | | | | | | | Loan of $150,000 dated July 1, 2020 from the U.S. Small Business Administration. The loan bears interest at 3.75% and matures on July 28, 2050. The loan is payable in monthly installments of $731 with the remaining principal and accrued interest due at maturity. Installment payments were originally due to start 12 months from the date of the note but the date was extended to January 2023. Accrued interest from the original installment due date to January 2023 was capitalized to the loan principal balance. | | | 155,699 | | | | 156,428 | | | | | | | | | | | Convertible promissory note payable to FK Venture, LLC dated April 7, 2025. The note bears interest at a rate of 10% per annum and matures on September 30, 2026. The Company may prepay the note in whole or in part, provided that if prepayment occurs within twelve months of issuance, the Company must pay a minimum of twelve months’ interest. At any time prior to the Maturity Date, the investor may elect to convert the outstanding principal and any accrued but unpaid interest into shares of the Company’s common stock at a fixed conversion price of $0.15 per share. | | | 1,200,000 | | | | 1,200,000 | | | | | | | | | | | Total long-term debt | | | 48,171,488 | | | | 48,172,217 | | Less current portion | | | (48,018,773 | ) | | | (1,202,956 | ) | Debt discount on current portion of note payable to Discover | | | 2,477,473 | | | | - | | Current portion, net of debt discount | | | (45,541,300 | ) | | | (1,202,956 | ) | Long-term debt, net of current portion | | | 152,715 | | | | 46,969,261 | | Debt discount on note payable to Discover | | | - | | | | (3,270,854 | ) | Total long-term debt, net of current portion and debt discount | | $ | 152,715 | | | $ | 43,698,407 | |
Principal maturities of long-term debt for the next five years and thereafter are as follows: At March 31, | | | | | | | | | | | | Principal | | | Unamortized Discount | | | Net | | 2027 | | $ | 48,018,773 | | | $ | (2,477,473 | ) | | $ | 45,541,300 | | 2028 | | | 3,098 | | | | - | | | | 3,098 | | 2029 | | | 3,216 | | | | - | | | | 3,216 | | 2030 | | | 3,339 | | | | - | | | | 3,339 | | 2031 | | | 3,466 | | | | - | | | | 3,466 | | Thereafter | | | 139,596 | | | | - | | | | 139,596 | | | | | | | | | | | | | | | | | $ | 48,171,488 | | | $ | (2,477,473 | ) | | $ | 45,694,015 | |
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