Notes Payable, Acquisitions

6 Months Ended

Jun. 30, 2023

Notes Payable Acquisitions

Notes Payable, Acquisitions

5. Notes Payable, Acquisitions

Notes payable, acquisitions consists of the following at June 30, 2023 and December 31, 2022:

	June 30,			December 31,
	2023			2022
GameIQ acquisition note payable	$	115,104		$	127,778
Restaurant.com acquisition note payable		-			1,500,000
Total principal balance		115,104			1,627,778
Accrued interest		638			252,194
Total principal and accrued interest		115,742			1,879,972
Less current portion		(34,066	)		(1,798,478	)
Non-current portion	$	81,676		$	81,494

GameIQ Acquisition Note Payable

On February 1, 2022, two notes payable for the purchase of GameIQ were issued, one for $78,813. and another for $62,101. RDE, Inc. promises to pay to the order of the holders the principal amounts together with annual interest of 1%, which shall be paid upon the earlier of (i) nine (9) equal biannual installments with the first installment due on the nine-month anniversary of February 1, 2022, and the final payment due February 1, 2025. In the event of default, the notes to the Holders are secured, in the manner that such payment to be made in cash or shares of the RDE, Inc.’s common stock at the election of the holders. These Notes may be prepaid in whole or in part by RDE, Inc.

As of December 31, 2022, the notes payable had an aggregate principal balance outstanding of $127,788 and accrued interest payable of $688. During the six months ended June 30, 2023, the Company made principal payments of $12,674. As of June 30, 2023, the notes payable had an aggregate principal balance outstanding of $115,104 and accrued interest payable of $638.

Restaurant.com Note Payable

Pursuant to the terms of the acquisition agreement with Restaurant.com, Inc. entered into on March 1, 2020, the Company executed an unsecured promissory note in the principal amount of $1,500,000 that matured on March 1, 2023. The promissory note bears interest at a rate of 6% per annum and is convertible at the option of the Company into common shares at a price to be determined on the date of conversion.

As of December 31, 2022, the note payable had a principal balance outstanding of $1,500,000 and accrued interest payable of $251,507. On March 1, 2023, the principal and interest balance of approximately $1,770,000 was converted into 554,859 shares of the Company’s common stock, and the note was retired.