Notes Payable – Stockholders and Related Parties

12 Months Ended

Dec. 31, 2023

Notes Payable Stockholders And Related Parties

Notes Payable – Stockholders and Related Parties

10. Notes Payable – Stockholders and Related Parties

At December 31, 2023 and 2022, the balances of long-term notes payable to stockholders and related parties are as follows:

	December 31, 2023			December 31, 2022
Total notes payable - Related parties	$	2,088,000		$	1,925,000
Less current maturities		(310,000	)		(109,000	)
Long-term maturities	$	1,778,000		$	1,816,000

Scheduled future maturities of notes payable are as follows:

Maturities due within:
1 year	$	310,000	$	109,000
2 years		316,000		775,000
3 years		885,000		166,000
4 years		72,000		875,000
5 years		505,000		—
	$	2,088,000	$	1,925,000

These are notes payable to stockholders and related parties. The notes have interest payable monthly of 8% per annum and are unsecured and subordinated. The principal is due on various dates through March 31, 2028. The notes roll-over at periods from one to four years on maturity unless the note holder requests repayment through written instructions within ninety days prior to the expiration date. Notes totaling $587,000 and $862,000 were rolled over during the years ended December 31, 2023 and 2022, respectively. Interest expense on these notes totaled approximately $154,000 and $156,000 during the year ended December 31, 2023 and 2022, respectively. The Company received proceeds on these notes of $190,000 and $35,000 for the years ended December 31, 2023 and 2022, respectively. The Company repaid principal on these notes of $27,000 and $181,302 for the years ended December 31, 2023 and 2022, respectively. In January 2022, the Company exchanged $20,000 of these notes payable for 2,000 shares of Series A Convertible Preferred Stock at a price of $10.00 per share. There were no gains or losses on this exchange.