Current Convertible Notes Payable and Other Notes Payable

12 Months Ended

Dec. 31, 2022

Current Convertible Notes Payable and Other Notes Payable

Current Convertible Notes Payable and Other Notes Payable

4. Current Convertible Notes Payable and Other Notes Payable

As of December 31, 2022, the details of the convertible notes payable and other notes payable are shown in the table below:

Payee	No.	Effective Date	Due Date	From Effective	Following Maturity	Conversion Rate	Issuing Purpose	As of 1/1/2022	Addition	Converted/Payment	As of 12/31/2022	Accrued Interest
Convertible notes payable:
Stephen Chen	#1.16	1/30/2016	Payable on demand	0.75%	NA	$ 2.52	working capital	114,026	-	-	114,026	6,694
Stephen Chen	#2.16	3/18/2016	Payable on demand	0.65%	NA	$ 2.81	working capital	262,500	-	-	262,500	11,583
								376,526	-	-	376,526	18,277
Ainos KY	#12.21	4/27/2021	10/27/2021	1.85%	NA	$ 3.00	working capital	15,000	-	(15,000)	-	-
Ainos KY	#13.21	5/5/2021	11/5/2021	1.85%	NA	$ 3.00	working capital	20,000	-	(20,000)	-	-
Ainos KY	#14.21	5/25/2021	11/25/2021	1.85%	NA	$ 3.00	working capital	30,000	-	(30,000)	-	-
Ainos KY	#15.21	5/28/2021	11/28/2021	1.85%	NA	$ 3.00	working capital	35,000	-	(35,000)	-	-
Ainos KY	#16.21	6/9/2021	12/9/2021	1.85%	NA	$ 3.00	working capital	300,000	-	(300,000)	-	-
Ainos KY	#17.21	6/21/2021	12/21/2021	1.85%	NA	$ 3.00	working capital	107,000	-	(107,000)	-	-
Ainos KY	#18.21	7/2/2021	1/2/2022	1.85%	NA	$ 3.00	working capital	54,000	-	(54,000)	-	-
Ainos KY	#19.21	9/1/2021	3/1/2022	1.85%	NA	$ 3.00	working capital	120,000	-	(120,000)	-	-
Ainos KY	#20.21	9/28/2021	3/28/2022	1.85%	NA	$ 3.00	working capital	300,000	-	(300,000)	-	-
Ainos KY	#21.21	11/10/2021	5/10/2022	1.85%	NA	$ 3.00	working capital	50,000	-	(50,000)	-	-
Ainos KY	#22.21	11/25/2021	11/25/2022	1.85%	NA	$ 3.00	working capital	450,000	-	(450,000)	-	-
Ainos KY	#23.21	11/29/2021	5/29/2022	1.85%	NA	$ 3.00	working capital	300,000	-	(300,000)	-	-
Ainos KY	#24.21	12/29/2021	6/29/2022	1.85%	NA	$ 3.00	working capital	1,219,000	-	(1,219,000)	-	-
								3,000,000	-	(3,000,000)	-	-
			Total convertible notes payable- related parties					3,376,526	-	(3,000,000)	376,526	18,277
Non-Convertible Notes Payable:
Stephen Chen	#9.21	1/1/2021	4/14/2021	0.13%	10%	NA	working capital	129,405	-	(129,405)	-	-
Ainos KY	#26.22 (2)	3/4/2022	2/28/2023	1.85%	N/A	NA	working capital	-	800,000	-	800,000	12,286
				Notes payable-related party				129,405	800,000	(129,405)	800,000	12,286
i2 China	#8b.20	1/1/2020	1/1/2021	1.85%	10%	NA	consulting fee	84,000	-	-	84,000	4,719
				Note payable- non-related party				84,000	-	-	84,000	4,719
				Total notes payable				213,405	800,000	(129,405)	884,000	17,005
				Total convertible and non-convertible				3,589,931	800,000	(3,129,405)	1,260,526	35,282

All of the aforementioned convertible promissory notes and other notes payable are unsecured and due on demand upon maturity. The Company may prepay the notes in whole or in part at any time. The Payee has the option to convert some or all of the unpaid principal and accrued interest to our common voting stock.

On March 11, 2022, the Board approved a Non-Convertible Note dated March 4, 2022 in favor of Ainos KY with a principal amount of $800,000, interest of 1.85% per annum on unpaid principal and accrued interest, and a maturity date of February 28, 2023. The Note includes standard provisions for notice, default, and remedies for default.

On March 17, 2022, we executed a Promissory Note Extension Agreement with Ainos KY in which the due dates for certain convertible notes enumerated as #12.21 to #24.21 issued by the Company to Ainos KY were extended to February 28, 2023. The total unpaid principal for these extended period convertible notes amounted to $3,000,000 in the aggregate. Upon closing of the Offering, the principal and accrued interest in the total amount of $3,042,959 were automatically converted to 1,014,319 shares of common stock on August 9, 2022.

As of December 31, 2022, the amount of current convertible and other notes payable totaled $1,260,526.

The total interest expense of convertible notes payable and other notes payable for the year ended 2022 was $49,994, and the cumulative accrued interest as of December 31, 2022 was $35,282.

As of December 31, 2021, the details of the convertible notes payable and other notes payable are shown in the table below:

Payee	No.	Effective Date	Due Date	From Effective	Following Maturity	Conversion Rate	Issuing Purpose	As of 1/1/2021	Addition	Converted/Payment	As of 12/31/2021	Accrued Interest
Convertible notes payable:
Stephen Chen	#1.16	1/30/2016	Payable on demand	0.75%	NA	$ 0.17	working capital	114,026	-	-	114,026	5,839
Stephen Chen	#2.16	3/18/2016	Payable on demand	0.65%	NA	$ 0.19	working capital	262,500	-	-	262,500	9,878
Stephen Chen	#3.19	9/1/2019	9/1/2020	1.85%	10%	$ 0.25	salary	39,620	-	(39,620)	-	-
Stephen Chen	#4.19	12/1/2019	12/31/2020	1.61%	10%	$ 0.25	working capital	14,879	-	(14,879)	-	-
Stephen Chen	#6.20	1/1/2020	1/1/2021	1.85%	10%	$ 0.25	salary	216,600	-	(216,600)	-	-
Stephen Chen	#7.20	1/1/2020	1/2/2021	1.60%	10%	$ 0.25	working capital	23,366	-	(23,366)	-	-
Stephen Chen	#10.21	1/1/2021	4/1/2021	1.85%	1.85%	$ 0.25	salary	-	59,025	(59,025)	-	-
Stephen Chen	#11.21	4/1/2020	5/1/2021	1.85%	10%	$ 0.25	salary	-	10,000	(10,000)	-	-
								670,991	69,025	(363,490)	376,526	15,717
Ainos KY	#12.21	4/27/2021	10/27/2021	1.85%	NA	$ 0.20	working capital	-	15,000	-	15,000	189
Ainos KY	#13.21	5/5/2021	11/5/2021	1.85%	NA	$ 0.20	working capital	-	20,000	-	20,000	243
Ainos KY	#14.21	5/25/2021	11/25/2021	1.85%	NA	$ 0.20	working capital	-	30,000	-	30,000	335
Ainos KY	#15.21	5/28/2021	11/28/2021	1.85%	NA	$ 0.20	working capital	-	35,000	-	35,000	385
Ainos KY	#16.21	6/9/2021	12/9/2021	1.85%	NA	$ 0.20	working capital	-	300,000	-	300,000	3,117
Ainos KY	#17.21	6/21/2021	12/12/2021	1.85%	NA	$ 0.20	working capital	-	107,000	-	107,000	1,047
Ainos KY	#18.21	7/2/2021	1/2/2022	1.85%	NA	$ 0.20	working capital	-	54,000	-	54,000	498
Ainos KY	#19.21	9/1/2021	3/1/2022	1.85%	NA	$ 0.20	working capital	-	120,000	-	120,000	742
Ainos KY	#20.21	9/28/2021	3/28/2022	1.85%	NA	$ 0.20	working capital	-	300,000	-	300,000	1,429
Ainos KY	#21.21	11/10/2021	5/10/2022	1.85%	NA	$ 0.20	working capital	-	50,000	-	50,000	129
Ainos KY	#22.21	11/25/2021	11/25/2022	1.85%	NA	$ 0.20	working capital	-	450,000	-	450,000	798
Ainos KY	#23.21	11/29/2021	5/29/2022	1.85%	NA	$ 0.20	working capital	-	300,000	-	300,000	471
Ainos KY	#24.21	12/29/2021	6/29/2022	1.85%	NA	$ 0.20	working capital	-	1,219,000	-	1,219,000	124
								-	3,000,000	-	3,000,000	9,507
			Total convertible notes payable- related parties					670,991	3,069,025	(363,490)	3,376,526	25,224
i2 China	#5.19	9/1/2019	9/1/2020	1.85%	10%	$ 0.25	Consulting fee	16,000	-	(16,000)	-	-
i2 China	#8a.20	1/1/2020	1/1/2021	1.85%	10%	$ 0.25	Consulting fee	48,000	-	(48,000)	-	-
i2 China	#11.21	1/1/2020	4/1/2021	1.85%	10%	$ 0.25	Consulting fee	-	37,000	(37,000)	-	-
			Total convertible notes payable- non-related party					64,000	37,000	(101,000)	-	-
Y3s			Total Convertible notes payable					734,991	3,106,025	(464,490)	3,376,526	25,224
Notes payable:
Stephen Chen	#9.21	1/1/2021	4/1/2021	0.13%	10%	NA	working capital	134,010	145,395	(150,000)	129,405	312
				Notes payable-related party				134,010	145,395	(150,000)	129,405	312
i2 China	#8b.20	1/1/2020	1/1/2021	1.85%	10%	NA	Consulting fee	84,000	-	-	84,000	3,137
				Notes payable- non-related party				84,000	-	-	84,000	3,137
					Total notes payable			218,010	145,395	(150,000)	213,405	3,449
			Total convertible and non-convertible					953,001	3,251,420	(614,490)	3,589,931	28,673

All of the aforementioned convertible promissory notes and other notes payable are unsecured and due on demand upon maturity. The Company may prepay the notes in whole or in part at any time. The Payee has the option to convert some or all of the unpaid principal and accrued interest to our common voting stock.

The convertible promissory notes are convertible on demand. The following convertible notes due to Stephen T. Chen – Notes 3.19, 4.19, 6.20, 7.20, 10.21, and 11.21 -- with a total principal and accrued interest amount of $372,988 were assigned by the holder to Top Calibre Corporation, a British Virgin Islands corporation, and subsequently converted to common stock of our company at a conversion price of $3.75 per share on December 27, 2021.

During 2021, the Company received funding from Dr. Stephen T. Chen and Ainos KY totaling $214,420 and $3,000,000, respectively. Amounts owed to Dr. Stephen T. Chen of $150,000 were repaid.

Note holders, i2China Management Group, LLC (“i2China”) and Dr. Stephen T. Chen (together the “Payees”), agreed to waive their rights pertaining to the conditional term “Annual Interest Rate on Matured, Unpaid Amounts: 10% per annum, compounded annually of Convertible Notes” in regards to interest charged on unpaid amounts following maturity for all of their respective notes. The Company and the Payees agree that the originally agreed annual interest rate will continue to be valid for any unpaid amounts after maturity. The amended terms of the above convertible notes and other notes payable were made during on September 1, 2021. Interest waived totaled $45,875.

As of December 31, 2021, the amount of current convertible and other notes payable totaled $3,589,931.

The total interest expense for 2021 was $21,727, and the cumulative related accrued interest as of December 31, 2021 was $28,673.