Notes Payable

6 Months Ended

Jun. 30, 2023

Notes Payable [Abstract]

NOTES PAYABLE

NOTE 3 – NOTES PAYABLE

On May 24, 2019, the company entered into an Asset Purchase Agreement (the “APA”) with Applied Optical Sciences, LLC (“AOS”) to acquire certain assets. As consideration for the APA, the company entered into a promissory note issued to the shareholders of AOS for $2,500,000. The note was non-interest bearing and payable in equal installments. The company made the first three payments of $500,000 on February 10, 2021, May 24, 2021, and November 19, 2021, respectively. The Promissory Note was amended on May 23, 2022, as modification of debt, to extend the maturity date by one year to May 24, 2023 and restructure the payment to time up to the adjusted maturity date. The remaining balance of $1,000,000 as of June 30, 2022 was to be paid in ten equal installments of $100,000 over a period of ten months with the final installment to be paid on April 24, 2023. In accordance with the amended terms of the promissory note, the company made six payments of $100,000 each, for an aggregate repayment of $600,000. As of June 30, 2023, $0 in principle was outstanding on this loan. The Company repaid the note in full.

Premium Financing

On March 16, 2023, the company entered into an agreement with Oakwood D&O Insurance to provide financing in the amount of $155,541 for the insurance premium associated with two D&O policies. Both policies commenced March 12, 2023, and provided coverage for the next 12 months, expiring March 12, 2024. The loan bears interest at a fixed rate of 8.75% per annum, required the company to prepay $40,410 and appears on the balance sheet as a current asset. On April 12, 2023, the company commenced monthly principal and interest payments of $17,282, which was the first payment of nine remaining months due of $155,541, the last payment of which is scheduled to be made on December 31, 2023. As of June 30, 2023, the outstanding balance on the note was $103,694 and was recorded as notes payable, a currently liability, in the company’s unaudited condensed consolidated balance sheet.

Notes Payable Reconciliation

The following reconciles notes payable as of June 30, 2023, and December 31, 2022:

	June 30, 2023			December 31, 2022
Beginning balance	$	400,000		$	1,024,190
Notes payable		155,541			175,435
Accrued interest		-			(636	)
Payments on notes payable		(451,847	)		(798,988	)
Total		103,694			400,000
Less-Notes payable – current		103,694			400,000
Notes payable – non-current	$	-		$	-

Future principal payments for the company’s Notes as of June 30, 2023, are as follows:

2023	$	103,694
Thereafter		-
Total	$	103,694

The company’s note payable balance of $103,694 is due within the next twelve months, in accordance with the terms of note payable.