NOTES PAYABLE, RELATED PARTY

9 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

NOTES PAYABLE, RELATED PARTY

(6) NOTES PAYABLE, RELATED PARTY

As of December 31, 2023, and March 31, 2023, the Company had borrowed $3,340,058 and $3,194,108 respectively, excluding accrued interest, from related parties. Short-term accrued interest associated with the Notes Payable, Related Parties and Promissory Notes, Related Parties, of $10,702 and $364,908 is recorded on the balance sheet as an Accrued Expense obligation at December 31, 2023, and March 31, 2023, respectively. Long-term accrued interest associated with the Notes Payable, Related Parties, and Promissory Notes, Related Parties, of $1,277,613 and $857,684 is recorded on the balance sheet as an Accrued Expense obligation at December 31, 2023, and March 31, 2023, respectively.

Related Party Promissory Notes

As of both December 31, 2023, and March 31, 2023, the Company owed $826,000 under the unsecured promissory notes from Mr. Dickman. The promissory notes bear interest at a rate of 8% annually. On June 5, 2023, the notes were amended to have a due date of August 31, 2024, or at the immediate time when alternative financing or other proceeds are received. As per the provision outlined in Note 4, and in conjunction with the extension of the due date of the promissory notes on June 5, 2023, the Company agreed to provide Mr. Dickman with warrants for 543,000 shares of common stock (see Note 4). Subsequent to quarter end, as per the provision outlined in Note 4, Mr. Dickman agreed to extend the unsecured promissory note to November 30, 2025. The Company agreed to provide Mr. Dickman with warrants to purchase 563,000 shares of common stock (see Note 8). During the nine months ended December 31, 2023, the Company neither borrowed any additional funds under this agreement nor made any principal repayments. As of December 31, 2023, accrued interest on the notes totaled $380,027. In the event the Company completes a successful equity raise all principal and interest on the notes are due in full at that time. The total number of warrants issued to the related party lender was 2,633,332 as of December 31, 2023 (See Note 4 for further details on these warrants).

On July 29, 2021, the Company entered into an unsecured promissory note agreement with Radiant Life, LLC. This agreement was in conjunction with the Company borrowing $50,000 of Notes Payable, Related Party, and is not part of the existing note payable and lines of credit agreement the Company has with Radiant Life, LLC. The promissory note bears interest at a rate of 8% annually and was amended on June 12, 2023, to be due on July 29, 2024. As of December 31, 2023, accrued interest on the note totaled $10,702.

Related Party Note Payable and Line of Credit Agreements

As of December 31, 2023, and March 31, 2023, the Company owed $1,304,550 and $1,198,600, respectively, exclusive of accrued interest, under the note payable and line of credit agreement with Kraig T. Higginson, Chairman of the Board of Directors and a stockholder. As of December 31, 2023, the agreement allowed for borrowings of up to $4,600,000. During the nine months ended December 31, 2023, the Company borrowed $140,950 in principal and made repayments on principal of $35,000 on this agreement. The note payable and line of credit agreement incurs interest at 7.5% per annum. As of December 31, 2023, accrued interest on this note totaled $378,967. As per the provision outlined in Note 4, and in conjunction with the $140,950 borrowed during the nine months ended December 31, 2023, the Company also agreed to provide the Chairman of the Board of Directors and a stockholder, with warrants for 281,900 shares of common stock, vested immediately upon issuance, having an exercise price of $1.05 per share, and a 5-year exercise window from the dates of issuance. Subsequent to quarter end, as per the provision outlined in Note 4, the Chairman of the Board of Directors agreed to extend the note payable and line of credit to November 30, 2025. The Company agreed to provide the Chairman of the Board of Directors with warrants to purchase 772,275 shares of common stock (see Note 8). During the nine months ended December 31, 2023, the company amortized $37,226 of debt discount, leaving a remaining debt discount balance of $53,731 in association with these warrants. The total number of warrants issued to the related party lender was 3,645,950 as of December 31, 2023 (see Note 4 for further details on these warrants).

As of December 31, 2023, and March 31, 2023, the Company owed $1,159,508 and $1,119,508, respectively, in principle under the note payable and lines of credit agreement with Radiant Life, LLC, an entity partially owned by the Chairman of the Board of Directors. The agreement allows for borrowings of up to $2,130,000. The note payable has a due date of the principal and interest on the note of November 30, 2024, or at the immediate time when alternative financing or other proceeds are received. The note payable and line of credit agreement incurs interest at 7.5% per annum and is collateralized by the Company’s NIBS, if any. During nine-months ended December 31, 2023, the Company borrowed $40,000, and made no repayments of principal on this agreement. As of December 31, 2023, accrued interest on this agreement totaled $518,619. As per the provision outlined in Note 4, and in conjunction with the $40,000 borrowed during the nine months ended December 31, 2023, the Company also agreed to provide Radiant Life, LLC, with warrants for 80,000 shares of common stock, vested immediately upon issuance, having an exercise price of $1.05 per share, and a 5-year exercise window from the date’s issuance. Subsequent to quarter end, as per the provision outlined in Note 4, the Radiant Life, LLC agreed to extend the note payable and lines of credit to November 30, 2025. The Company agreed to provide Radiant Life, LLC with warrants to purchase 699,754 shares of common stock (see Note 8). During the nine months ended December 31, 2023, the company amortized $23,618 of debt discount, leaving a remaining debt discount balance of $36,767 in association with existing warrants. The total number of warrants issued to the related party lender was 2,529,262 as of December 31, 2023 (see Note 4 for further details on these warrants).

As of December 31, 2023, the unamortized debt discount on related party notes payable is $90,498.