| LOANS PAYABLE |
NOTE 7: LOANS PAYABLE Loans payable is summarized as follows: | Description | | Loan
Date | | Loan
Amount | | | Interest
Rate | | | Maturity
Date | | Remaining
Principal
Balance
as of
June 30,
2026
(unaudited) | | | Remaining
Principal
Balance
as of
December 31,
2025 | | | Maxus Machinery* | | October 2025 | | $ | 667,964 | | | | 12.00 | % | | October 2027 | | $ | 435,963 | | | $ | 592,927 | | | Economic Injury Disaster Loan (“EIDL”)** | | May 2020 | | $ | 149,900 | | | | 3.75 | % | | May 2050 | | | 149,900 | | | | 149,900 | | | M&T Term Loan*** | | May 2025 | | $ | 328,500 | | | | 6.09 | % | | May 2030 | | | 265,347 | | | | 295,011 | | | | | | | | | | | | | | | | | | 851,210 | | | | 1,037,838 | | | Less current maturities | | | | | | | | | | | | | | | 375,375 | | | | 383,827 | | | Less unamortized debt issuance cost | | | | | | | | | | | | | | | 33,333 | | | | 45,833 | | | Loans payable, net of current maturities | | | | | | | | | | | | | | $ | 442,502 | | | $ | 608,178 | | | * | On October 1, 2025, the Company entered into a Truck Loan agreement with a third-party lender Maxus Machinery in the amount of $667,964. The loan bears interest at 12% per annum and is repayable in 24 equal monthly installments, beginning November 1, 2025. Upon execution of the agreement, the Company also paid a non-refundable legal and due diligence fee of $50,000. As security for the loan, the Company granted the lender a security interest in forty (40) adjustable and tandem-axle chassis identified by their respective vehicle identification numbers. In the event of default, the lender may accelerate the loan and take possession of the collateral. | | | | | ** | The EIDL was entered into during May 2020. Interest accrues at 3.75% per annum. Under the original agreement, principal payments were deferred, and the maturity date is May 2050. | | *** | On May 8, 2025, the Company entered into a term loan with M&T Bank in the amount of $328,500. The loan bears interest at a rate of 6.09% and has monthly payments of principal and interest. The maturity date is May 2030 and is collateralized by the Company’s equipment. | Interest expense on loans payable mentioned above amounted to $26,479 and $1,251 for the three months ended June 30, 2026 and 2025, respectively. Interest expense on loans payable mentioned above amounted to $44,692 and $2,501 for the six months ended June 30, 2026 and 2025, respectively. Amortization of debt issuance costs amounted to $6,250 and $12,500 for the three and six months ended June 30, 2026, respectively. At June 30, 2026, combined scheduled maturities of the outstanding debt are as follows: | For the Twelve-month Periods Ending June 30: | | | | | 2027 | | $ | 375,375 | | | 2028 | | | 188,682 | | | 2029 | | | 70,124 | | | 2030 | | | 67,129 | | | 2031 | | | - | | | Thereafter | | | 149,900 | | | | | $ | 851,210 | |
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