Notes Payable

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Notes Payable

Note 9 - Notes Payable

Notes payable at June 30, 2021 and December 31, 2020 consist of the following:

	June 30,			December 31,
	2021			2020
RWJ acquisition note	$	2,600,000		$	2,600,000
SBA loan		150,000			150,000
Promissory note to Alpha Eda		140,000			140,000
Total notes payable		2,890,000			2,890,000
Unamortized debt discount		—			—
Notes payable		2,890,000			2,890,000
Less current portion		(2,740,000	)		(2,741,737	)
Notes payable, long-term portion	$	150,000		$	148,263

RWJ Acquisition Note

In connection with the acquisition of RWJ in September 2017, the Company issued a note payable. The note accrues interest at 3.5% per annum, was due on December 31, 2019 and is secured by the assets purchased in the acquisition. The Company contests the validity of the note, as such the note has not been repaid as of June 30, 2021. (See Note 14). The balance of the note at June 30, 2021 was $2,600,000 plus accrued interest of $359,631. The balance of the note at December 31, 2020 was $2,600,000 plus accrued interest of $307,631.

SBA Loan

On June 22, 2020, the Company received a loan from the Small Business Administration under the Economic Injury Disaster Loan (“EIDL”) program related to the COVID-19 relief efforts. The loan bears interest at 3.75% per annum, requires monthly principal and interest payments of $731 after 12 months from funding and is due 30 years from the date of issuance. The monthly payments have been extended by the SBA to all EIDL borrower with additional 12 months. Monthly payments will commenced on or around June 2022. The balance of the note at June 30, 2021 was $150,000 plus accrued interest of $5,879. The balance of the note at December 31, 2020 was $150,000 plus accrued interest of $3,067.

Alpha Eda

On November 15, 2020, the Company issued a promissory note to Alpha Eda, LLC (“Alpha”) for $140,000. The note accrues interest at 10% per annum, is unsecured and is due on June 30, 2021. On June 20, 2021 Alpha and the Company extended the note maturity to December 31, 2021. The balance of the note at June 30, 2021 was $140,000 plus accrued interest of $8,802. The balance of the note at December 31, 2020 was $140,000 plus accrued interest of $1,803.

Discounts on Promissory Note

The Company recognized interest expense of $0 and $47,671 during the six months ended June 30, 2021 and 2020, respectively related to the amortization of the debt discount on notes payable.