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DEBT (Tables)

9 Months Ended

Sep. 30, 2022

The following table presents the details of the principal outstanding:

SCHEDULE OF DEBT TABLE

	September 30, 2022		December 31, 2021		APR at September 30, 2022			Maturity	Collateral
Notes payable ^(a)	$	5,357,792	$	5,557,792		8.00	%	September 2026	Substantially all Company assets
Convertible Notes ^(b)		1,300,000		1,300,000		6.00	%	September 2023-January 2024	-
PPP Loans ^(c)		8,674		189,428		1.00	%	April 2025	-
Economic Impact Disaster loan		150,000		150,000		3.75	%	November 2052	Substantially all Company assets
Total	$	6,816,466	$	7,197,220

	(a)	The unpaid principal bears annual interest at the Wall Street Journal prime rate plus 1.75% per year.
	(b)	Included in Convertible Notes are loans provided to the Company from two directors, an officer and two investors. The notes each have the following terms: three-year subordinated convertible promissory note of principal face amounts. Subject to other customary terms, the Convertible Notes mature between September 2023 and January 2024 and bear interest at an annual rate of 6%, which is payable annually in cash or common stock, at the holder’s discretion. At any time after issuance and prior to or on the maturity date, the note is convertible at the option of the holder into shares of common stock at a conversion price of $15 per share.
	(c)	The Small Business Administration forgave approximately $178,000 of PPP loans during the nine-month period ended September 30, 2022, which was recognized as other income.


	For the nine-month period ended
	September 30, 2022		September 30, 2021
Interest expense		303,957		425,323

As of September 30, 2022, the expected future principal payments for the Company’s debt are due as follows:

SCHEDULE OF FUTURE PRINCIPAL PAYMENTS