Debt |
5.
Debt
Line
of credit
On
November 29, 2022, the Company entered into a 9% agreement for the purchase of inventory with a total capacity of $886,469. During March
2023, the Company replaced the November 29, 2022 agreement with an 8% inventory financing facility totaling $1,000,000 for the purchase
of inventory. $500,000 is due on June 11, 2023, with the remaining balance and accrued interest due at maturity on July 11, 2023.
Notes
payable
The
Company’s notes payable as of June 30, 2023, are summarized as follows:
Schedule of Notes Payable
Noteholder | |
Origination | |
Maturity |
| |
Interest | | |
Principal | | |
Discount | |
Noteholder
A1 | |
8/15/2022 | |
2/15/2024 |
| |
| 6.667 | % | |
$ | 540,758 | | |
$ | - | |
Noteholder
A2 | |
8/15/2022 | |
2/15/2024 |
| |
| 6.667 | % | |
| 1,498,450 | | |
| - | |
Noteholder
A3 | |
8/15/2022 | |
2/15/2024 |
| |
| 6.667 | % | |
| 2,336,858 | | |
| - | |
Noteholder
B | |
9/2/2021 | |
9/2/2022 |
* | |
| 12 | % | |
| 100,000 | | |
| - | |
Noteholder
B | |
10/7/2021 | |
10/7/2022 |
| |
| 15 | % | |
| 50,000 | | |
| - | |
Noteholder
C | |
4/1/2022 | |
4/1/2023 |
| |
| 10 | % | |
| 85,594 | | |
| 4,291 | |
Noteholder
C | |
8/15/2022 | |
2/15/2024 |
| |
| 6.667 | % | |
| 1,876,191 | | |
| - | |
Noteholder
G | |
6/20/2017 | |
8/5/2017 |
* | |
| 18 | % | |
| 55,353 | | |
| - | |
Noteholder
F | |
8/15/2022 | |
2/15/2024 |
| |
| 6.667 | % | |
| 288,720 | | |
| - | |
Noteholder
D | |
8/15/2022 | |
2/15/2024 |
| |
| 6.667 | % | |
| 1,263,164 | | |
| - | |
Noteholder
I | |
6/17/2020 | |
6/17/2050 |
| |
| 4 | % | |
| 160,000 | | |
| - | |
Noteholder
J | |
8/15/2022 | |
2/15/2024 |
| |
| 6.667 | % | |
| 640,239 | | |
| - | |
Noteholder
K | |
8/28/2021 | |
9/1/2022 |
* | |
| 15 | % | |
| 50,000 | | |
| - | |
Noteholder
K | |
10/6/2021 | |
10/6/2022 |
| |
| 15 | % | |
| 66,980 | | |
| - | |
Noteholder
L | |
7/12/2022 | |
- |
| |
| 10 | % | |
| 24,500 | | |
| - | |
Noteholder
M | |
7/12/2022 | |
- |
| |
| 10 | % | |
| 25,000 | | |
| - | |
Noteholder
M | |
7/25/2022 | |
- |
| |
| 5 | % | |
| 30,000 | | |
| - | |
Noteholder
N | |
7/28/2022 | |
- |
| |
| 10 | % | |
| 50,000 | | |
| - | |
Noteholder
O | |
8/31/2022 | |
8/31/2031 |
| |
| 3.15 | % | |
| 8,000,000 | | |
| 7,925,926 | |
| |
| |
|
| |
| | | |
$ | 17,141,807 | | |
$ | 7,930,217 | |
* |
In
default at June 30, 2023 |
** |
In
default subsequent to June 30, 2023 |
The
Company’s notes payable as of September 30, 2022, are summarized as follows:
Noteholder | |
Origination | |
Maturity | | |
Interest | | |
Principal | | |
Discount | |
Noteholder A1 | |
8/15/2022 | |
| 2/15/2024 | | |
| 6.667 | % | |
$ | 540,758 | | |
$ | - | |
Noteholder A2 | |
8/15/2022 | |
| 2/15/2024 | | |
| 6.667 | % | |
| 1,498,450 | | |
| - | |
Noteholder A3 | |
8/15/2022 | |
| 2/15/2024 | | |
| 6.667 | % | |
| 2,336,858 | | |
| - | |
Noteholder B | |
9/2/2021 | |
| 9/2/2022 | * | |
| 12 | % | |
| 100,000 | | |
| - | |
Noteholder B | |
10/7/2021 | |
| 10/7/2022 | | |
| 15 | % | |
| 50,000 | | |
| - | |
Noteholder C | |
4/1/2022 | |
| 4/1/2023 | | |
| 10 | % | |
| 85,594 | | |
| 4,291 | |
Noteholder C | |
8/15/2022 | |
| 2/15/2024 | | |
| 6.667 | % | |
| 1,876,191 | | |
| - | |
Noteholder G | |
6/20/2017 | |
| 8/5/2017 | * | |
| 18 | % | |
| 55,353 | | |
| - | |
Noteholder F | |
8/15/2022 | |
| 2/15/2024 | | |
| 6.667 | % | |
| 288,720 | | |
| - | |
Noteholder D | |
8/15/2022 | |
| 2/15/2024 | | |
| 6.667 | % | |
| 1,263,164 | | |
| - | |
Noteholder I | |
6/17/2020 | |
| 6/17/2050 | | |
| 4 | % | |
| 160,000 | | |
| - | |
Noteholder J | |
8/15/2022 | |
| 2/15/2024 | | |
| 6.667 | % | |
| 640,239 | | |
| - | |
Noteholder K | |
8/28/2021 | |
| 9/1/2022 | | |
| 15 | % | |
| 50,000 | | |
| - | |
Noteholder K | |
10/6/2021 | |
| 10/6/2022 | | |
| 15 | % | |
| 66,980 | | |
| - | |
Noteholder L | |
7/12/2022 | |
| - | | |
| 10 | % | |
| 24,500 | | |
| - | |
Noteholder M | |
7/12/2022 | |
| - | | |
| 10 | % | |
| 25,000 | | |
| - | |
Noteholder M | |
7/25/2022 | |
| - | | |
| 5 | % | |
| 30,000 | | |
| - | |
Noteholder N | |
7/28/2022 | |
| - | | |
| 10 | % | |
| 50,000 | | |
| - | |
Noteholder O | |
8/31/2022 | |
| 8/31/2031 | | |
| 3.15 | % | |
| 8,000,000 | | |
| 7,925,926 | |
| |
| |
| | | |
| | | |
$ | 17,141,807 | | |
$ | 7,930,217 | |
* |
In default at September 30,
2022 |
At
June 30, 2023 and September 30, 2022, accrued interest related to notes payable totaled $873,905 and $191,437, respectively.
Convertible
notes payable
The
Company’s convertible notes payable as of June 30, 2023, are summarized as follows:
Schedule of Convertible Notes Payable
Noteholder | |
Origination | | |
Maturity | |
|
Interest | | |
Conversion | | |
Principal | |
Discount | |
Noteholder C | |
| 8/23/2022 | | |
| 8/23/2023 | ** |
|
| 12 | % | |
$ | 0.0245/share | | |
| 1,451,087 | |
| 143,166 | |
Noteholder D | |
| 8/23/2022 | | |
| 8/23/2023 | ** |
|
| 12 | % | |
$ | 0.0245/share | | |
| 722,826 | |
| 67,446 | |
Noteholder E | |
| 11/4/2020 | | |
| 5/4/2021 | * |
|
| 15 | % | |
$ | 0.059/share | | |
| 100,000 | |
| - | |
| |
| | | |
| | |
|
| | | |
| | | |
$ | 2,273,913 | |
$ | 210,612 | |
* |
|
In
default at June 30, 2023 |
** |
|
In
default subsequent to June 30, 2023 |
The
Company’s convertible notes payable as of September 30, 2022, are summarized as follows:
Noteholder |
|
Origination |
|
|
Maturity |
|
|
Interest |
|
|
Conversion |
|
|
Principal |
|
|
Discount |
|
Noteholder
C |
|
|
8/23/2022 |
|
|
|
8/23/2023 |
|
|
|
12 |
% |
|
$ |
0.0245/share |
|
|
|
1,451,087 |
|
|
|
1,002,198 |
|
Noteholder
D |
|
|
8/23/2022 |
|
|
|
8/23/2023 |
|
|
|
12 |
% |
|
$ |
0.0245/share |
|
|
|
722,826 |
|
|
|
472,140 |
|
Noteholder
E |
|
|
11/4/2020 |
|
|
|
5/4/2021 |
* |
|
|
15 |
% |
|
$ |
0.059/share |
|
|
|
100,000 |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,273,913 |
|
|
$ |
1,474,338 |
|
* |
|
In
default at September 30, 2023 |
At
June 30, 2023 and September 30, 2022, accrued interest related to convertible notes payable totaled $165,445 and $46,266, respectively.
Future
maturities
Future
maturities of the Company’s debt as of June 30, 2023 are as follows:
Schedule of Future Maturities of the Company’s Debt
| |
| | |
September 30, 2023 | |
$ | 7,354,059 | |
September 30, 2024 | |
| 4,582,366 | |
September 30, 2025 | |
| 3,400 | |
September 30, 2026 | |
| 3,500 | |
September 30, 2027 | |
| 3,600 | |
Thereafter | |
| 8,005,807 | |
Long term debt | |
$ | 19,952,732 | |
|