v3.26.1
NOTE 7 - NOTES PAYABLE, IN DEFAULT
6 Months Ended
Jun. 30, 2026
Notes  
NOTE 7 - NOTES PAYABLE, IN DEFAULT

NOTE 7 – NOTES PAYABLE, IN DEFAULT

 

Notes payable is comprised of the following:

 

 

June 30,
2026

 

December 31, 2025

Loan agreement with an unaffiliated individual, interest at 6% per annum, due December 16, 2021. In default.

 

$50,000 

 

$50,000 

Note payable to unaffiliated individual, interest at 20% per annum, due October 26, 2024. In default.

 

- 

 

5,000 

Note payable to unaffiliated individual, interest at 20% per annum, due October 26, 2024. In default.

 

- 

 

5,000 

Note payable to unaffiliated individual, interest at 20% per annum, due March 30, 2025. In default

 

- 

 

8,400 

Total Notes Payable

  

$50,000 

 

$68,400 

 

One promissory note entered into in 2021 with an unaffiliated individual has a principal balance of $50,000 and is senior in priority to other indebtedness of the Company. The Company’s Chief Executive Officer personally and unconditionally guaranteed repayment of this note.

 

During the six months ended June 30, 2026 the Company paid off three notes totaling $18,400 in principal and $6,626 in accrued interest and recognized a gain on settlement of $104.

 

As of June 30, 2026 the remaining outstanding note is in default.

Interest expense related to notes payable was $2,640 and $4,618 for the six months ended June 30, 2026 and 2025, respectively. Interest expense was $852 and $1,666 for the three months ended June 30, 2026 and 2025, respectively. Accrued interest was $15,131 and $19,117 as of June 30, 2026 and December 31, 2025, respectively.