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NOTES PAYABLE
 3 Months Ended
Mar. 31, 2022
Debt Disclosure [Abstract]  
NOTES PAYABLE

9. NOTES PAYABLE

 

The following table presents a summary of the Company’s promissory notes issued to unrelated third parties as of March 31, 2022:

 

SCHEDULE OF PROMISSORY NOTES ISSUED TO UNRELATED THIRD PARTIES

   Note Amount   Issuance Date  Balance 
A. Rodriguez  $86,821   3/14/13  $86,821 
A. Rodriguez   15,000   7/22/13   15,000 
A. Rodriguez   10,000   2/21/14   10,000 
Henry Mahgerefteh   144,000   2/15/15   126,831 
TRA Capital   106,112   3 loans   125,247 
BNA Inv   223,449   6 loans   30,753 
Brian Berg   30,000   2/1/12   25,000 
Classic Bev   73,473   5/1/17   298,976 
PowerUp   257,000   2 loans   113,500 
TysAdco Partners   1,405,000   4 loans   1,526,000 
LGH Investments   850,000   2 loans   748,000 
Jefferson Capital   330,000   12/1/22   330,000 
SBA Loan   309,900   4/1/20   159,900 
Dicer   64,678   7/20/20   129,420 
Seaport loan   437,500   9/30/21   312,500 
TCA Global fund   2,150,000   5/1/18   3,534,395 
TCA Global fund 2   3,000,000   12/17/19   7,596,395 
   $9,492,933      $15,168,737 

 

   Amount   Issuance Date  Balance 
Cap Call   1,000,000   3 loans - 2020   1,288,884 
Fox Capital   607,500   12/1/20   495,075 
   $1,607,500      $1,783,959 

 

The following description represent unrelated notes payable transactions pre-reverse merger between Snöbar and the Company that were assumed by the Company as a condition to the Share Exchange Agreement:

 

In February 2012, MGD entered into an unsecured promissory note with a certain unrelated party, now a shareholder of the Company for a principal balance of $30,000 at in interest rate of 8% per year and maturity date of August 1, 2014. The note’s maturity date has been extended to December 31, 2025, and the interest rate under the extinguished as part of the extension. The note had an outstanding balance of $25,000 as of March 31, 2022.

 

 

On March 14, 2013, Snöbar Holdings entered into an unsecured promissory note with a certain unrelated third party, now a shareholder of the Company. The note had a principal balance of $86,821 with an interest rate of 5% and had a maturity date of March 14, 2025. The note’s maturity date has subsequently been extended to February 1, 2020. The entire balance is owed and outstanding as of March 31, 2022.

 

On July 22, 2013, Snöbar Holdings entered into an unsecured promissory note with a certain unrelated third party. The note had a principal balance of $15,000 with an original interest rate of 5%. Maturity date has been extended to December 31, 2025, and interest rate has been reduced to 2%, and lender agreed to make all interest retroactive and deferred. The balance of the note was $15,000 as of March 31, 2022.

 

The following description represents unrelated note payable transactions post-merger between Snöbar and the Company:

 

Effective September 25, 2020, the Company entered into a settlement agreement with BNA/TRA in the amount of $400,000. The settlement pays as follows October 1, 2020, PACV pays $30,000, November 1, 2020, PACV pays $30,000. On the 1st of every month following $11,500 payment to be made until balance is paid in full. As of March 31, 2022 the note is current.

 

In March 2021, the Company entered into a financing arrangement with Power Up Lending pursuant to which the Company borrowed a total principal of $257,000 secured by shares of the Company’s common stock. The notes were subject to a 6 month hold before any stock was issued. The current balance as of March 31, 2022, is $113,500.

 

Over the past year Classic Beverage has periodically issued loans to the Company. The Company has agreed to pay interest 10% per year and has agreed on penalty fees if late on payments. The note is due on demand. The current balance is $298,976, including capitalized interests and penalty fees.

 

On May 1, 2018, Pacific Ventures Group entered into a secured promissory note with TCA Global Master Fund. The note was secured by interests in tangible and intangible property of Pacific Ventures Group. The effective interest rate on the note is 16%. The outstanding balance of the notes with TCA Global Fund for San Diego Farmers Outlet is $3,534,395 as of March 31, 2022 which includes capitalized interests.

 

On December 17, 2019, Pacific Ventures Group entered into a secured promissory note with TCA Special Situations Credit Strategies ICAV. The note was secured by interests in tangible and intangible property of Pacific Ventures Group. The effective interest rate is 16%. The outstanding balance of the notes for Seaport Meat is $7,596,395 as of March 31, 2022, which includes capitalized interests.

 

On July 20, 2020, Seaport Group Enterprises LLC entered a note in the amount of $150,000.00 for a new piece of machinery in order to upgrade the processing line. The note is payable monthly in installment payments of $2,500.00. As of March 31, 2022, the note is current.

 

On December 8, 2019, The Company entered into a settlement agreement on the Seller Carryback note with PNC Inc. in the amount of $700,000. The payment schedule calls for $200,000 payment that was made in July and $61,500 every quarter for a period of two years. As of March 31, 2022, the note is current.

 

In September 2020, Seaport Group Enterprises LLC entered into a revenue-based factoring agreement with Cap Call and received an aggregate of $1,000,000 CAP Call in exchange for $1,300,000.00 of future receipts relating to monies collected from customers or other third-party payors. Under the terms of the agreement, the Company is required to make weekly payments for 30 weeks. Payments are current.

 

In September 2020, Seaport Group Enterprises LLC entered into a revenue-based factoring agreement with Fox Business and received an aggregate of $607,500.00 Fox Business in exchange for $789,750.00 of future receipts relating to monies collected from customers or other third-party payors. Under the terms of the agreement, the Company is required to make weekly payments for 30 weeks. Payments are current.

 

In the first and second quarter 2021, The Company entered into a note agreement with Tysadco Partners with a total amount of $1,405,000. In the first quarter of 2021, the Company entered into a note agreement of $325,000. The notes can be repaid in cash or converted common stock or a combination of both. Balance of all the notes is $1,526,000. As of March 31, 2022, the notes are current.

 

In the second quarter of 2021, The Company entered into note agreements with LGH Financial in the total amount of $880,000. The note can be repaid in cash or converted common stock or a combination of both. As of March 31, 2022, the note is current.

 

As of March 31, 2022, the Company had short-term notes payable of $1,485,051 and long-term notes payable of $14,185,431. The Company had purchase receivables of $1,783,959.