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Notes Payable, Related Party Notes Payable, and Revenue Financing Arrangements
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Notes Payable, Related Party Notes Payable, and Revenue Financing Arrangements

Note 4 – Notes Payable, Related Party Notes Payable, and Revenue Financing Arrangements

 

Notes payable are generally nonrecourse and secured by all Company owned assets.

 

               
   Interest Rate  December 31, 2023  December 31, 2022
Notes Payable               
                
In March 2014, the Company entered into a short-term loan agreement with an entity in the amount of $200,000. The note included warrants for 272,584 shares of common stock at $0.94 per share. The warrants expired unexercised on February 28, 2017. The loan and interest was paid off in February 2023   8%   —    200,000 
                
In December 2020, the Company entered into a 56- month loan with a company in the amount of $1,578,237. The loan requires payments of 3.75% through November 2022 and 4.00% through September 2025 of the previous month’s revenue. Note is due September 2025. Note is guaranteed by a related party see note 6.   17%   371,693    1,044,445 
                
In April 2021, the Company entered into various six-month loans with individuals totaling in the amount of $168,000. The loans had an original maturity of October 2021 with principal and interest due at maturity with conversion price of $3.30 per share. The loans were extended to March 31, 2024.   7%   168,000    168,000 
                
In May 2021, the Company entered into various six-month loans with individuals totaling in the amount of $60,000. The loans had an original maturity of October 2021 with principal and interest due at maturity with conversion price of $3.30 per share. The loans were extended to March 31, 2024.   7%   60,000    60,000 
                
In August 2022, we entered into a 56-months auto loan in the amount of $45,420.   2.35%   32,996    42,396 
                
In December 2022, the Company entered into various eighteen-month loans with individuals totaling in the amount of $4,000,000. The notes included 100% warrant coverage. The loans mature in June 2024 with principal and interest due at maturity with conversion price of $1.00 per share.   12%   4,000,000    4,000,000 
                
In February 2023, the Company entered into a twelve-month loan with an entity in the amount of $2,000,000. The convertible note included the issuance of 1,500,000 shares of common stock . The loan matures in February 2024 with conversion price of $0.85 per share and is non-interest bearing   —%   1,769,656    — 
                
In May 2023, the Company entered into various eighteen-month loans with individuals totaling in the amount of $800,000. The notes included 50% warrant coverage. The loans mature in November 2024 with principal and interest due at maturity with conversion price of $1.00 per share.   12%   800,000    — 
                
 In June 2023, the Company entered into various eighteen-month loans with individuals totaling in the amount of $350,000. The notes included 50% warrant coverage. The loans mature in December 2024 with principal and interest due at maturity with conversion price of $1.00 per share.   12%   350,000    — 
                
In July 2023, the Company entered into a twelve-month loan with an individual in the amount of $750,000. The note included 50% warrant coverage. The loan matures in July 2024 with principal and interest due at maturity with conversion price of $1.00 per share.   12%   750,000    — 
                
In July 2023, the Company entered into a twelve-month loan with an individual in the amount of $100,000. The note included 50% warrant coverage. The loan matures in January 2025 with principal and interest due at maturity with conversion price of $1.00 per share.   12%   100,000    — 
                
 In August 2023, the Company entered into a twelve-month loan with an individual in the amount of $300,000. The convertible note included the issuance of 150,000 shares of common stocks. The loan matures in August 2024 with principal and interest due at maturity with conversion price of $0.85 per share and is non-interest bearing.   —    300,000    — 
                
 In October 2023, the Company entered into a three-month loan with an individual in the amount of $500,000. The loan matures in January 2024 with principal and interest due at maturity. The loan was extended to March 2024.   10%   500,000    — 
                
In October 2023, the Company entered into a loan with an individual in the amount of $196,725 The loan matures in March 2024. Note is guaranteed by a related party.   —    91,785    — 
                
In October 2023, the Company entered into a loan with an individual in the amount of $130,000. The loan requires payment of 17% of daily Shopify sales.   —    88,431    — 
                
In October 2023, the Company entered into a eighteen-month loan with individuals totaling in the amount of $1,250,000. The note included 100% warrant coverage. The loan matures in April 2025 with principal and interest due at maturity with conversion price of $1.00 per share   12%   1,250,000    — 
                
In December 2023, we entered into a 2.5-month loan with an individual in the amount of $450,000. The loan had a maturity of March 2024 with principal and interest due at maturity.   10%   450,000    — 
                
    Total notes payable   $11,082,561   $5,514,841 
                
    Less notes discount    (2,876,387)   (1,898,265)
                
    Less current portion    (7,748,518)   (1,080,257)
                
    Long-term notes payable   $457,656   $2,536,319 

 

Interest expense on notes payable was $1,836,377 and $246,090 for the years ended December 31, 2023 and 2022, respectively. Accrued interest was $1,714,646 and $141,591 at December 31, 2023 and December 31, 2022, respectively. The Company’s effective interest rate was 60.17% for the year ended December 31, 2023.

 

As of December 31, 2023, the Company’s convertible note balances are convertible into 11,127,500 shares of common stock.

 

Notes discount of $2,876,387 and $1,898,265 for the year ending December 31, 2023 and 2022 respectively is related to the discounted warrants and common shares issued in connection with the notes.

   

             
   Interest Rate  December
31, 2023		  December
31, 2022
Shareholder Notes Payable          
              
In February 2023, we entered into a loan with an individual in the amount of $200,000. The annual interest rate is 12%  12%   200,000    — 
              
   Less current portion   (200,000)   — 
              
   Long-term notes payable  $—   $— 

 

Interest expense on related party notes payable was $20,400 and $5,407 for the years ended December 31, 2023 and 2022, respectively.