v3.26.3
Debt Disclosure
6 Months Ended
Jun. 30, 2026
Notes  
Debt Disclosure

10.  DEBT

Debt consisted of the following as of June 30, 2026 and December 31, 2025:

Notes outstanding, in USD

June 30, 2026

December 31, 2025 (as restated)

Cloud Builder, Inc. promissory note

25,961

25,203

Advocate CPA, Inc. demand note

21,000

21,000

Gross debt obligations

46,961

46,203

Less: current portion

(21,000)

(21,000)

Long-term debt, net of current portion

25,961

25,203

 

The notes payable to Epazz, Inc. assumed in the voided mergers (principal $1,014,094; accrued interest $699,009 at December 31, 2025, as previously reported) have been derecognized (Note 2).

Cloud Builder, Inc. promissory note

The Cloud Builder, Inc. note bears interest at 6% per year added to principal; Cloud Builder, Inc. is associated with the successor custodian (Note 12). The Advocate CPA, Inc. demand note bears interest at 6% (Note 12).

Secured Promissory Note – Meridian Pacific Holdings, LLC

The Secured Promissory Note to Meridian dated August 21, 2017 (0.5% per month; 10% late charge) was payable on February 20, 2018 and is in default. The Court allowed Meridian’s claim at $579,100 as of August 11, 2026 (principal and facility fee $353,500, interest $190,250, late fee $35,350), with interest continuing to accrue:

 

June 30, 2026

December 31, 2025 (as restated)

Principal and facility fee

353,500

353,500

Accrued interest

187,856

177,345

Late charge

35,350

35,350

Amount due to Meridian Pacific Holdings, LLC

576,706

566,195

 

Interest expense on the note was $5,284 and $10,511 for each three-month and six-month period presented. The Company has no information that the security interest is enforceable against any of its assets. The Company was in compliance with its other debt at both dates.