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Loans Payable

9 Months Ended

Sep. 30, 2021

NOTE 6 - LOANS PAYABLE

Loans Payable

The following table summarizes the activity of loans payable during the nine months ended September 30, 2021:

	Principal Balance at December 31, 2020		Forgiveness			Principal Repaid in Cash			Adjustment			Effect of Foreign Exchange Rates			Principal Balance at September 30, 2021
Kingsbrook	$	150,000	$	-		$	(150,000	)	$	-		$	-		$	-
Paycheck Protection Program		53,051		(9,670	)		-			(2,000	)		-			41,381
Bounce Back Loan Scheme		68,245		-			(3,168	)		-			(954	)		64,123
First Assurance Funding		655,593		-			(585,031	)		-			-			70,562
Other loans payable		155,320		-			-			-			-			155,320
Total loans payable		1,082,209	$	(9,670	)	$	(738,199	)	$	(2,000	)	$	(954	)		331,386
Less: loans payable - current portion		968,446														279,290
Loans payable - non-current portion	$	113,763													$	52,096

On March 3, 2021, the Company repaid the Kingsbrook Opportunities Master Fund LP (“Kingsbrook”) loans payable in cash for an aggregate of $166,313, which included the principal amount of $150,000 and accrued interest of $16,313.

During the nine months ended September 30, 2021, the Company paid an aggregate of $585,031 and $3,168 in partial satisfaction of the First Assurance Funding and the Bounce Back Loan Scheme, respectively.

On May 19, 2021, the Company applied for loan forgiveness for the amount of $51,051 in connection with amounts borrowed by Katexco under the Paycheck Protection Program. On August 5, 2021, the Company was notified that $9,670 was forgiven in connection with the PPP loan. The Company is in the process of filing an appeal for the remainder of the balance.

On September 30, 2021, the Company adjusted a portion of the PPP loan of $2,000 to other income since that was a grant that was given to 180LS by the government and it does not need to be repaid.

Loans Payable – Related Parties

The below table summarizes the activities of loans payable – related parties during the nine months ended September 30, 2021:

	Principal Balance at December 31, 2020		Principal Exchanged into Common Stock			Effect of Foreign Exchange Rates		Principal Balance at September 30, 2021
Loans payable issued between
September 18, 2019 through November 4, 2020	$	513,082	$	(433,374	)	$	1,536	$	81,244

On February 10, 2021, the Company entered into amended loan agreements to modify the terms of certain loan agreements in the aggregate principal amount of $432,699, previously entered into with Sir Marc Feldmann and Dr. Lawrence Steinman, the Co-Executive Chairmen of the Board of Directors. The loan agreements were extended and modified to be paid back at the Company’s discretion, either by 1) repayment in cash, or 2) by converting the outstanding amounts into shares of common stock at the same price per share as the next financing transaction. Subsequently, on February 25, 2021, and effective as of the date of the original February 10, 2021 amendments, the Company determined that such amendments were entered into in error and each of Sir Feldmann and Dr. Steinman rescinded such February 10, 2021 amendments pursuant to their entry into Confirmations of Rescission acknowledgements. As such, the amendments to allow Sir Feldmann and Dr. Steinman the option to convert such loans into shares of common stock were never effective.

On April 12, 2021, the Company entered into amended loan agreements with Sir Marc Feldmann and Dr. Lawrence Steinman, the Co-Executive Chairman of the Board of Directors, which extended the maturity date of all of their outstanding loan agreements to September 30, 2021.

Exchanges of Related Party Loans

On September 30, 2021, certain related party noteholders elected to exchange an aggregate principal of $433,374 and aggregate accrued interest of $61,530 into an aggregate of 82,484 shares of the Company’s common stock at a price of $6.00 per share, pursuant to the terms of the agreement. (see Note 9 - Stockholders’ Equity, Exchanges of Related Party Loans and Convertible Notes)

Interest Expense on Loans Payable

During the three months ended September 30, 2021 and 2020, the Company recognized interest expense associated with loans payable of $2,315 and $5,724, respectively, and interest expense associated with loans payable – related parties of $10,566 and $9,402, respectively. During the nine months ended September 30, 2021 and 2020, the Company recognized interest expense associated with loans payable of $20,498 and $40,583, respectively, and recognized interest expense associated with loans payable – related parties of $30,898 and $24,193, respectively.

As of September 30, 2021, the Company had accrued interest and accrued interest — related parties associated with loans payable of $22,453 and $10,719, respectively. As of December 31, 2020, the Company had accrued interest and accrued interest — related parties associated with loans of $24,824 and $37,539, respectively. See Note 10 - Related Parties for additional details.