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Note Payable and Accrued Interest
 12 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Note Payable and Accrued Interest

Note 8 – Note Payable and Accrued Interest

 

On February 10, 2021, the Company entered into a note payable with its current bank in the principal amount of $514,200, for working capital purposes.

 

The loan amount incurred interest at 1% and was due on February 5, 2026. The loan could have been repaid in advance without penalty. The loan was also potentially forgivable in full provided proceeds were used for payment of payroll expenses, rent, utilities and mortgage interest and certain other terms and conditions were met. If any portion of the loan was not forgiven, payments would commence 10 months following the end of the 24-week deferral period. The loan had typical default provisions, including for change of ownership, general lender insecurity as to repayment, non-payment of amounts due, defaults on other debt instruments, insolvency, dissolution or termination of the business as a going concern and bankruptcy.

 

During the year ended December 31, 2021, interest of $2,832 was accrued in respect of this note payable.

 

 

CEA Industries Inc.

Notes to Consolidated Financial Statements

December 31, 2022

(in US Dollars except share numbers)

 

On November 30, 2021, the Company received notice from the bank that its loan received on February 10, 2021, in the principal amount of $514,200 and all accrued interest of $2,832, was fully forgiven. This gain on loan forgiveness was recorded as Other Income in the Statement of Operations during the year.