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Notes Payable
 12 Months Ended
Dec. 31, 2024
Notes Payable [Abstract]  
Notes Payable

Note 9 - Notes Payable

 

On August 14, 2024, we entered into a note purchase agreement with Streeterville Capital, LLC (“Lender”) pursuant to which we issued and sold a secured promissory note in the original principal amount of $5,455,000. The note carries an original issue discount of $435,000, and we paid $20,000 to cover the Lender’s legal and transaction costs, reducing the purchase price received by us to $5,000,000. Interest accrues at 8% annually, and the unpaid amount, interest, fees, and late fees are due 18 months after issuance. The note and agreement include terms like the Lender’s ability to redeem a portion of the note, events of default, penalties, restrictive covenants on our ability to issue certain securities, a “most favored nation” provision. Additionally, Rhove, Be My Neighbor, and our U.S. subsidiaries signed security and intellectual property agreements in favor of the Lender, and our U.S. subsidiaries also guaranteed all of the Company’s obligations under the note and other transaction documents.

 

The Company had the following outstanding notes payable as of December 31, 2024 and December 31, 2023:

 

a. Summary of Notes payable:

 

   December 31,
2024		   December 31,
2023		 
Secured promissory note to Streeterville Capital, LLC, $435,000 original issue discount  $5,455,000   $
-
 
Less: Unamortized debt issuance costs & Original issue discount   (545,624)   6 
Total Notes payable  $4,909,376   $
-
 

 

As of December 31, 2024, accrued interest was $166,111, compared to $0 as of December 31, 2023. As of December 31, 2024 and December 31, 2023, unamortized debt issuance and original issue discount were reflected within long term liabilities on the consolidated balance sheets, netted with the notes payable. The amortization of original issue discount and origination fee for the period ended December 31, 2024 was $181,875.