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Notes Payable, Non-related Parties and Related Party
3 Months Ended
Mar. 31, 2023
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 March 31, 2023 and December 31, 2022 consist of the following:

 

          
   March 31,  December 31,
   2023  2022
1800 note  $59,408   $ 
SBA loan   350,000    350,000 
Total notes payable   409,408    350,000 
Unamortized debt discount   (55,517)    
Notes payable   353,891    350,000 
Less current portion       (41,137)
Notes payable, long-term portion  $353,891   $308,863 

 

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 March 31, 2023 and at December 31, 2022 was $350,000 and $350,000 plus accrued interest of $26,943 and $23,707, respectively.

 

Notes payable, related party at March 31, 2023 and December 31, 2022 consist of the following:

 

               
    March 31,   December 31,
    2023   2022
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 March 31, 2023 Alpha and the Company extended the note maturity to December 31, 2023. The balance of the note at March 31, 2023 and at December 31, 2022 was $140,000 and $140,000 plus accrued interest of $36,085 and $32,633, respectively.

 

Discounts on Promissory Note

 

The Company recognized interest expense of $3,891 and $0 during the period ended March 31, 2023 and December 31, 2022, respectively, related to the amortization of the debt discount on promissory notes. The unamortized debt discount at March 31, 2023 and at December 31, 2022 was $55,516 and $0, respectively.