DEBT |
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| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DEBT | NOTE 11 – DEBT
Convertible Notes
The Company uses the Black-Scholes Model to calculate the derivative value of its convertible debt and certain promissory notes. The valuation result generated by this pricing model is necessarily driven by the value of the underlying common stock incorporated into the model. The values of the common stock used were based on the price at the date of issue of the debt security as of December 31, 2025 and 2024. In 2023 management determined the expected volatility of %, a risk-free rate of interest of %, and contractual lives of the debt of three months. In 2022 management determined the expected volatility of %, a risk-free rate of interest of %, and contractual lives of the debt of three months. Management made the determination to use an expected life rather than contractual life for the calculations for the matured debt as of December 31, 2024 and 2023.
As of December 31, 2025 and, 2024, there was $181,000 and $0 of certain promissory notes principal outstanding (with variable conversion features embedded in the notes on maturity). During the year ended December 31, 2025 and 2024, $0 and $0 of the debt discount was amortized.
The summary of promissory notes are:
During the years ended December 31, 2025 and 2024, change in fair value of the derivative liability was $(258,864) and $(45,268), respectively. The following is a summary of the derivative liability:
Notes Payable
On September 5, 2025 the Company entered into a promissory note for a principal of $65,550, which was funded on September 10, 2025. The note bears interest at a rate of 15% per annum and matures after nine months.
On November 24, 2025, the Company entered into a promissory note for a principal of $65,550, which was funded on November 26,2025. The note bears interest at a rate of 15% per annum and matures after nine months.
On December 3, 2025, the Company entered into a promissory note for a principal of $77,050, which was funded on December 4,2025. The note bears interest at a rate of 15% per annum and matures after nine months.
Loans Payable
The Company’s RI and WS subsidiaries have various loans including Small Business Association (“SBA”) Economic Injury Disaster Loan (“EIDL”) loans, lines of credit and other advances. The loans bear interest with varying rates up to 9.25% per annum. The following is a summary of the loans payable at December 31, 2025 and 2024:
Certain of the Company’s subsidiary debt arrangements are guaranteed by former shareholders of the acquired entity. The Company has not assumed these guarantees and has no legal obligation related to such guarantees.
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