NOTES PAYABLE

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

NOTES PAYABLE

NOTE 6 –NOTES PAYABLE

Notes payable as of June 30, 2024 and December 31, 2023, consisted of the following: 

	(Unaudited)
	June 30,			December 31,
	2024			2023
Note to an entity by the former owner of farm property, interest at 6.00%, due in monthly installments of $38,687 including interest, secured by real property, due in 2039	$	4,677,531		$	4,707,902
Unsecured Promissory Note to 1800 Diagonal Lending LLC, a commercial lender, with one-time interest of 13%, due in four installments beginning August 30, 2024 and due in total by November 30, 2014, original issue discount of $18,600		93,000			0
Note to a bank, interest at 3.75%, due in monthly installments of $719 including interest, secured by real property, due in 2050		147,866			150,000
Secured Promissory Note to Arcadia Funding LLC, a commercial lender, accrued fixed interest at the rate of $12,500 per month, secured by real property, due in December 16, 2024.		350,000			0
		5,268,397			4,857,902
Less Current Portion		(1,046,872	)		(525,609	)
Net Long-Term Debt	$	4,221,525		$	4,332,293

The estimated notes payable maturities as of June 30, 2024 are as follows: 

June 30, 2025	$	1,046,872
June 30, 2026		228,765
June 30, 2027		242,807
June 30, 2028		257,801
June 30, 2029		273,532
Thereafter		3,218,620
	$	5,268,397

In February 2024, the Company signed an unsecured promissory note with a lender for $111,600, bearing one-time interest at the rate of 13%, and maturing on four dates beginning on August 30, 2024 and ending on November 30, 2024. The proceeds of this note were issued with an original issue discount of $18,600, yielding net proceeds of $93,000. Upon full maturity, the Company will have paid a total of $126,108 of principal and interest on this note.

In May 2024, the Company signed a Secured Promissory Note with a lender for $350,000 bearing fixed interest at the rate of $12,500 per month with maturity date December 2024. The Secured Promissory Note requires monthly interest payments only commencing in June 2024. Principal amount along any accrued but unpaid interest should be paid at maturity date. The note is secured by property owned by the Company and trustee by Travis L. Bence or John R. Bailey.

At March 31, 2024, the Company was in default on the farm property note for $4,707,902 due to failure to remit timely monthly payments. On May 31, 2024, the Company entered into a Forbearance and Modification Agreement with the lender. Under the agreement, the lender agreed that it would not exercise or enforce its rights or remedies against the Company to which it would be entitled under the terms of the Real Estate Lien Note dated June 15, 2017 in the original principal amount of $5,600,000, and the Deed of Trust executed by the Company as grantor in favor of Jizhong Wang, as trustee, for the benefit of the lender by occurrence of the failure by the Company to pay principal and interest installments from May 1, 2022, through May 31, 2024 before August 6, 2024. The forbearance was conditioned on the obligation of the Company to pay the lender $77,375, which was paid and applied to the principal and interest.