Notes Payable to Related Parties |
Note 5 — Notes Payable to Related Parties Notes payable to related parties consisted of the following: | | June 30, 2024 | | | June 30, 2023 | | March 2020 – Total loan of $600,000 with interest rate at 12% per annum due in December 2020, currently due upon demand. | | $ | 100,000 | | | $ | 100,000 | | April 2020 – Total loan of $50,000 with interest rate at 12% per annum due in January 2021, currently due upon demand. | | | 7,817 | | | | 7,817 | | March 2024 – Total loan of $65,000 with interest rate at 12% per annum due in May 2024. | | | 30,000 | | | | - | | Total notes payable to related parties | | | 137,817 | | | | 107,817 | | Less current portion of notes payable to related parties | | | (137,817 | ) | | | (107,817 | ) | Notes payable to related parties, less current portion | | $ | - | | | $ | - | |
| · | March 2020 - $600,000 | | | | | | During the year ended June 30, 2020, the Company entered into a promissory note with a related party with a face value of $600,000 in exchange for a total of $565,000 cash payments with interest rate at 12% per annum due in December 2020. The total discount of the note was amortized over the life of the note and recorded as an interest expense which matured on December 1, 2020. In January 2021, the Company repaid $300,000 and in July 2022 the Company repaid $100,000 of the note balance. The note is in default and due upon demand and the interest rate was increased to 12%. As of June 30, 2024 and 2023, the total unpaid and accrued interest was $13,437 and $5,437, respectively, and is recorded in accrued liabilities. | | | | | · | April 2020 - $50,000 | | | | | | During the year ended June 30, 2020, the Company entered into a promissory note with a related party with a face value of $50,000 with interest rate at 10% per annum due in December 2020. In January 2021, the Company repaid $25,000 and in July 2022 repaid $17,183 of the note balance. The note is in default and the interest rate increased to 12%. As of June 30, 2024 and 2023, the total unpaid and accrued interest was $2,240 and $1,615, respectively, and is recorded in accrued liabilities. | | · | March 2024 - $65,000 | | | | | | During the quarter ended March 31, 2024, the Company entered into two promissory notes with related parties with a total value of $65,000 with interest rate at 12% per annum due in May 2024. During the year ended June 30, 2024, the Company paid $35,000. As of June 30, 2024, the total unpaid and accrued interest was $3,206 and is recorded in accrued liabilities. |
Total interest expense on notes payable to related parties was $20,480 and $50,543 for the years ended June 30, 2024 and 2023, respectively.
|