v3.26.1
NOTE 6 - NOTES PAYABLE
6 Months Ended
Jun. 30, 2026
Notes  
NOTE 6 - NOTES PAYABLE

NOTE 6 – NOTES PAYABLE

 

As of the months ending June 30, 2026 and December 31, 2025, the Company had the following:

 

Note

 

Issuance Date

 

Maturity Date

 

Interest
Rate

 

Original
Principal
Amount

 

Balance at
June 30,
2026

 

Balance at
December 31,
2025

Unsecured debt D

 

March 20, 2023

 

August 17, 2024

 

10%

 

330,000

 

-

 

  -

Secured debt E

 

May 19, 2023

 

May 18, 2024

 

12.99%

 

131,000

 

-

 

  -

Secured debt F

 

July 26, 2023

 

May 18, 2024

 

12.99%

 

196,000

 

-

 

  -

Secured debt G

 

December 19, 2023

 

December 18, 2024

 

10%

 

94,600

 

-

 

  -

Unsecured debt J

 

March 18, 2024

 

May 25, 2025

 

15%

 

247,300

 

-

 

  -

Secured debt K

 

April 15, 2024

 

October 15, 2025

 

11%

 

36,630

 

-

 

  -

Secured debt M

 

June 20, 2025

 

December 20, 2026

 

8.5%

 

173,600

 

-

 

  67,184

Secured debt N

 

April 6, 2026

 

October 5, 2028

 

9.2%

 

152,880

 

106,933

 

  -

Secured debt R

 

May 15, 2026

 

No Due Date

 

0%

 

165,000

 

165,000

 

  -

Secured debt S

 

April 6, 2026

 

No Due Date

 

0%

 

629,000

 

629,000

 

  -

Unsecured debt T

 

January 23, 2026

 

April 17, 2027

 

12%

 

176,000

 

133,824

 

-

Secured debt U

 

October 1, 2025

 

Multiple Due Date

 

Multiple % Rates

 

957,786

 

937,468

 

949,714

Secured debt V

 

October 1, 2025

 

April 12, 2030

 

9%

 

69,030

 

59,691

 

65,991

Secured debt W

 

October 1, 2025

 

October 22, 2026

 

49.97%

 

114,032

 

38,282

 

88,782

Unsecured debt X

 

May 15, 2026

 

No Due Date

 

Multiple % Rates

 

531,338

 

232,210

 

-

Total notes payable

 

 

 

 

 

 

$

4,004,196

$

2,302,408

$

  1,171,671

Debt discount and deferred financing costs

 

 

 

-

 

-

 

  -

Total notes payable, net

 

 

$

4,004,196

$

2,302,408

$

  1,171,671

 

Unsecured debt D: On March 20, 2023, the Company received an unsecured loan in the principal of $330,000 with a loan origination fee in the amount of $30,000, which was fully expensed as interest expense in this period. The net proceeds from this loan were $300,000. The loan is unsecured and the initial payment of $23,359 will be due on June 17, 2023. There will be fourteen monthly payments due on the 17th day of each following month, beginning on July 17, 2023 through August 17, 2024. Interest will accrue at an interest rate of 10% per annum on any unpaid principal amount. If the Company defaults on the loan, the default interest will increase to 16% per annum. During 2023, the Company made a total in principal payments of $163,514 towards the unsecured debt D. During 2024, the Company made a total in principal payments of $46,718 towards the unsecured debt D. On March 18, 2024, the Company agreed with the borrower to close this unsecured debt D and roll over the outstanding principal in to unsecured debt J. As of June 30, 2026, the principal balance of the note was paid off.

 

Secured debt E: On May 19, 2023, the Company agreed to a secured loan by any consigned inventory held at fulfillment centers and any rights, title or interest in their account. The principal loan amount was $131,000 and will have a loan term of twelve months with an annual interest rate of 12.99%, with a default rate of 14.99%. The first payment of principal and interest will be $11,700 and will be due June 19, 2023 with an additional eleven payments due each 19th of the month. During 2023, the Company has made principal payments totaling $10,282 towards the secured debt E. As of June 30, 2026, the principal balance of the note was paid off.

 

Secured debt F: On July 26, 2023, the Company agreed to a secured loan by any consigned inventory held at fulfillment centers and any rights, title or interest in their account. The principal loan amount was $196,000 and will have a loan term of twelve months with an annual interest rate of 12.99%, with a default rate of 14.99%. The first payment of principal and interest will be $17,505 and will be due August 26, 2023 with an additional eleven payments due each 26th of the month. During 2023, the Company has made principal payments totaling $85,601 towards the secured debt F. During 2024, the Company has made principal payments totaling $110,399 towards the secured debt F. As of June 30, 2026, the principal balance of the note was paid off.

 

Secured debt G: On December 19, 2023, the Company agreed to a secured loan by any rights, title or interest in their account. The principal loan amount was $86,000 and will have a loan term of twelve months. The note has a cost of funds equal to 10% of the loan amount or $8,600 and will be due upon acceptance of the loan amount. A total of $283 of the interest has been expensed in 2023. A total of $2,144 of the interest has been expensed in 2024. Payment will be made daily at a repayment rate of 14% of daily sales. and will be due December 21, 2023 and will continue until full amount owed is paid. During 2023, the Company has made principal payments totaling $2,074 towards the secured debt E. During 2024, the Company has made principal payments totaling $92,526 towards the secured debt E As of June 30, 2026, the principal balance of the note was paid off.

 

Unsecured debt J: On March 18, 2024, the Company received an unsecured loan in the principal of $247,300. The loan is unsecured and the initial payment of $19,365 will be due on April 25, 2024. There will be fourteen monthly payments due on the 25th day of each following month, beginning on April 25, 2024 through May 25, 2025. Interest will accrue at an interest rate of 15% per annum on any unpaid principal amount. If the Company defaults on the loan, the default interest will increase to 16% per annum. The Company has accrued $4,992 in interest and will accrue an additional $8,111 of interest over the life of the loan. During 2024, the Company has made principal payments totaling $230,823 towards the unsecured debt J. As of June 30, 2026, the principal balance of the note was paid off.

 

Secured debt K: On April 15, 2024, the Company agreed to a secured loan by any rights, title or interest in their account. The principal loan amount was $33,000 and will have a loan term of eighteen months. The note has a cost of funds equal to 11% of the loan amount or $3,630 and will be due upon acceptance of the loan amount. A total of $1,109 of the interest has been expensed in 2024. Payment will be made daily at a repayment rate of 6% of daily sales and will be due October 15, 2024 and will continue until full amount owed is paid. During 2024, the Company has made principal payments totaling $36,630 towards the secured debt K. As of June 30, 2026, the principal balance of the note was paid off.

 

Secured debt M: On June 20, 2025, the Company agreed to a secured loan by any rights, title or interest in their account. The principal loan amount was $160,000 and will have a loan term of eighteen months. The note has a cost of funds equal to 8.5% of the loan amount or $173,600 and will be due upon acceptance of the loan amount. A total of $1,113 of the interest has been expensed in 2025. Payment will be made daily at a repayment rate of 24% of daily sales and will be due December 20, 2026 and will continue until full amount owed is paid. During 2025, the Company

has made principal payments totaling $100,750 towards the secured debt M. During 2026, the Company has made principal payments totaling $72,850 towards the secured debt M.  As of June 30, 2026 the principal balance of secured debt M was paid off.

 

Secured debt N: On April 6, 2026, the Company agreed to a secured loan by any rights, title or interest in their account. The principal loan amount was $140,000 and will have a loan term of eighteen months. The note has a cost of funds equal to 9.2% of the loan amount or $152,880 and will be due upon acceptance of the loan amount. A total of $2,147 of the interest has been expensed in 2026. Payment will be made daily at a repayment rate of 25% of daily sales and will be due October 5, 2028 and will continue until full amount owed is paid. During 2026, the Company has made principal payments totaling $35,214 towards the secured debt N.  As of June 30, 2026 the principal balance of secured debt N was $106,933.

 

Unsecured debt R: On May 15, 2026, the Company executed a secured promissory note in the principal amount of $165,000.  The Company will make net profits payments immediately preceding each month until this note is paid off.  There is no interest accrued on this note except in the event of default in which interest will accrue at the rate of ten percent (10%) per annum until such time as the default is cured.  The loan is secured by all the assets of Adli Gummies.

 

Unsecured debt S: On May 15, 2026, the Company executed a secured promissory note in the principal amount of $629,000.  The Company will make net profits payments immediately preceding each month until this note is paid off.  There is no interest accrued on this note except in the event of default in which interest will accrue at the rate of ten percent (10%) per annum until such time as the default is cured.  The loan is secured by all the assets of Adli Gummies.

 

Unsecured debt T: On January 23, 2026, the Company received an unsecured loan in the principal of $193,600 with a loan origination fee in the amount of $17,600, which will be amortized over the life of the loan as interest expense. The net proceeds from this loan were $176,000. The loan is unsecured and the initial payment of $14,987 will be due on April 17, 2027. There will be fourteen monthly payments due on the 17th day of each following month, beginning on March 17, 2026 through April 17, 2026. Interest will accrue at an interest rate of 12% per annum on any unpaid principal amount. If the Company defaults on the loan, the default interest will increase to 16% per annum. The Company has accrued $6,769 in interest and will accrue an additional $10,831 of interest over the life of the loan. During 2026, the Company has made principal payments totaling $52,836 towards the unsecured debt T. As of June 30, 2026, the principal balance of the note was $133,824.

 

Secured debt U:  On October 1, 2026, the Company agreed to pay several secured loans which were taken from the Gummy USA merger.  There are five loans taken out in Donald Swanson’ name which are secured by his personal property.  The interest rates range from 8.14% to 10.21%.  The notes range from 5 years to 30 years terms.  During 2026, the Company has made principal payments totaling $13,691 towards the secured debt U.  As of June 30, 2026 the principal balance of secured debt U was 937,468.

 

Secured debt V:  On October 1, 2026, the Company assumed a secured loans which were included in the Gummy USA merger.  This loan is secured by a vehicle.  The interest rate is 9%.  The notes due date is April 12, 2030.  The Company makes monthly payments in the total of $1,555.27.  During 2026, the Company has made principal payments totaling $6,300 towards the secured debt U.  As of June 30, 2026 the principal balance of secured debt U was 59,691.

 

Secured debt W:  On October 1, 2026, the Company assumed a secured loans which were included in the Gummy USA merger.  This loan is secured by company assets.  The interest rate is 49.97%.  The notes due date is October 22, 2026.  The Company makes weekly payments in the total of $2,769.23.  During 2026, the Company has made principal payments totaling $72,000 towards the secured debt U.  As of June 30, 2026 the principal balance of secured debt W was $38,282.

 

Unsecured debt X: On May 15, 2026 the Company assumed two unsecured loans in the Adli Gummy, Inc acquisition.  The total of the two notes was $531,338.  They are issued at an average of 7.45% interest rate.  Both loans are revolving credit with no monthly payments required.  During 2026, the Company has made principal payments totaling $492,000 towards the secured debt X.  As of June 30, 2026 the principal balance of secured debt U was $232,210.