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NOTES PAYABLE – WORKING CAPITAL
6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
NOTES PAYABLE – WORKING CAPITAL

NOTE 7 – NOTES PAYABLE – WORKING CAPITAL

 

During the six months ending June 30, 2022, the Company and the Company’s wholly owned operating subsidiary completed the sale of several short-term notes under similar terms as its other short-term notes totalling $60,000. The notes are secured by a pledge of certain items of the Company’s current inventory and the chief executive officer’s personal guaranty.

 

 

During the six months ending June 30, 2022, the Company and the Company’s wholly-owned operating subsidiary repaid $2,541,634 of these short term notes and successfully completed the conversion of short term notes with a face value of $1,950,224 and accrued interest into shares of common stock with a fair value of $2,803,632, resulting in a Loss on extinguishment of debt of $1,376,756. The successful completion of the conversion of short term notes and accrued interest was done in conjunction with the successful registered public offering in February 2022.

 

At June 30, 2022, and December 31, 2021, the outstanding balance due on working capital notes was $605,037 and $4,952,326, respectively.