NOTES PAYABLE

12 Months Ended

Dec. 31, 2023

Notes Payable

NOTES PAYABLE

NOTE 8 - NOTES PAYABLE

A summary of the Company’s notes payable as at December 31, 2023 and 2022 is as follows: 

	2023		2022
Promissory notes (ASM)	$	–	$	7,382,998
CEBA Loan		45,365		44,300
Promissory notes (secured investors)		288,560		288,560
Promissory notes (LTB Transaction)		3,000,000		–
	$	3,333,925	$	7,715,858

Pursuant to the terms of a securities purchase agreement with Alternative Medical Solutions, Inc. (“AMS”), entered into on December 31, 2018 in the province of Ontario, the Company issued a non-interest-bearing $7,330,000 ($10,000,000 CAD) promissory note. The promissory note matured on December 24, 2021, and is past due.

As at December 31, 2023, the promissory note does not represent a current obligation due to the statute of limitations in which the lender could have entered a claim being reached in the province of Ontario as at December 24, 2023. As such, at December 31, 2023, the Company has recognized a gain on debt dissolution for the full amount owing to AMS of $7,477,554 representing the full balance of the promissory note.

Due to the global COVID 19 outbreak, the Government of Canada introduced the Canada Emergency Business Account (“CEBA”) program. CEBA provided an interest free loan (“CEBA Loan”) of up to $60,000 CAD to eligible businesses. On September 14, 2023, the Government of Canada announced changes to the maturity date of the CEBA Loan, which was extended to December 31, 2026. The loan will remain interest-free until January 18, 2024 with a rate of 5% per annum being applied from January 19, 2024. Repayment of $40,000 CAD by January 18, 2024 will result in a $20,000 CAD loan forgiveness. The CEBA Loan remained outstanding on January 18, 2024, and has been converted to a non-amortizing term loan with the full principal repayment due on December 31, 2026. The Company received the full $60,000 CAD loan amount and as at December 31, 2023 and 2022 the Company’s CEBA Loan balance is $45,365 ($60,000 CAD) and $44,300 ($60,000 CAD), respectively.

During the year ended December 31, 2021, the Company entered into promissory note agreements with secured investors for non-interest-bearing notes maturing within 12 months with a total value of $238,560 ($300,000 CAD). These notes are secured by a general security agreement over all present and after acquired property, assets, and undertakings. As at December 31, 2023 and 2022, the notes are past due and owing in the amount of $238,560 ($300,000 CAD) and $238,560 ($300,000 CAD), respectively.