Notes Payable, Non-related Parties and Related Party

12 Months Ended

Dec. 31, 2022

Notes Payable Non-related Parties And Related Party

Notes Payable, Non-related Parties and Related Party

Note –11 - Notes Payable, Non-related Parties and Related Party

Notes payable, non-related parties at December 31, 2022 and December 31, 2021 consist of the following:

	December 31,			December 31,
	2022			2021
RWJ acquisition note	$	—		$	2,600,000
SBA loan		350,000			350,000
Total notes payable		350,000			2,950,000
Unamortized debt discount		—			—
Notes payable		350,000			2,950,000
Less current portion		(41,137	)		(2,612,397	)
Notes payable, long-term portion	$	308,863		$	337,603

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%, 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 December 31, 2021. The balance of the note at December 31, 2022 and 2021 was $0 and $2,600,000 plus accrued interest of $0 and $394,666, respectively.

SBA Loan

On June 22, 2020, the Company received a loan from the Small Business Administration under the Economic Injury Disaster Loan program related to the COVID-19 relief efforts. The loan bears interest at 3.75%, 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 borrowers with additional 12 months. Monthly payments will be commenced on or around June 16, 2022. On October 1, 2021, the Company entered an Amended Loan Authorization and Agreement with the SBA providing for the modification of the Original Note providing for monthly principal and interest payments of $1,771 after 24 months from the Original Note commencing on or around June 22, 2022. On March 17, 2022 the SBA notified it deferred the payments to all COVID-19 EIDL loans will have the first payment due extended from 24-months to 30-months from the date of the note. The Modified Note will continue to bear interest at 3.75% and is due 30 years from the date of issuance of the Original Note. The Modified Note is guaranteed by Douglas Davis, the former CEO of the Company and current consultant, as well as by GBT Tokenize Corp. The additional funding of $200,000 was received by the Company on October 5, 2021. The balance of the note at December 31, 2022 and 2021 was $350,000 and $350,000 plus accrued interest of $23,707 and $10,582, respectively.

Notes payable, related party at December 31, 2022 and December 31, 2021 consist of the following:

	December 31,			December 31,
	2022			2021
Alpha Eda note payable	$	140,000		$	140,000
Total notes payable, related party		140,000			140,000
Unamortized debt discount		—			—
Notes payable, net, related party		140,000			140,000
Less current portion		(140,000	)		(140,000	)
Notes payable, net, related party, long-term portion	$	—		$	—

Alpha Eda

On November 15, 2020, the Company issued a promissory note to Alpha Eda, LLC (“Alpha”), a related party for $140,000. The note accrues interest at 10%, is unsecured and was due on September 30, 2021. On June 20, 2021 Alpha and the Company extended the note maturity to December 31, 2021. The balance of the note at December 31, 2022 and 2021 was $140,000 and $140,000 plus accrued interest of $32,633 and $16,633, respectively.

Discounts on Promissory Note

The Company recognized interest expense of $0 and $47,671 during the years ended December 31, 2021 and 2020, respectively, related to the amortization of the debt discount on promissory notes. The unamortized debt discount at December 31, 2021 and 2020 was $0.