XML 37 R14.htm IDEA: XBRL DOCUMENT v3.23.2
Notes Payable – Unrelated Parties
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Notes Payable – Unrelated Parties

8. Notes Payable – Unrelated Parties

 

Summary of Notes Payable to Unrelated Parties

 

The tables below summarize all notes payable at June 30, 2023 and December 31, 2022, respectively, with the exception of related party notes disclosed in Note 9 “Notes Payable - Related Parties.”

 

   June 30, 2023   December 31, 2022 
2022 Unrelated Notes  $2,364,500   $2,364,500 
2020 Notes   717,500    980,450 
Total notes payable  $3,082,000   $3,344,950 
Less unamortized debt issuance costs   (221,511)   (300,904)
Less unamortized debt discount   (4,267)   (22,045)
Less current portion   (709,083)   (936,966)
Long-term portion of notes payable  $2,147,139   $2,085,035 

 

Subordinated Notes Payable  Issue Date  Interest Rate   Interest Due  Principal Due
2022 Unrelated Notes  April 1, 2022   12%  Quarterly  March 30, 2025
2020 Notes  March 2, 2020   12%  Quarterly  August 31, 2023

 

Future minimum principal payments of the Notes Payable to Unrelated Parties are as follows:

 

As of June 30,  Amount 
2024  $717,500 
2025   2,364,500 
Total  $3,082,000 

 

As of June 30, 2023 and December 31, 2022, accrued interest for these notes payable with the exception of the related party notes in Note 9, “Notes Payable - Related Parties,” was $0. As of June 30, 2023 and December 31, 2022, unamortized deferred financing costs and unamortized debt discount were reflected within short and long term liabilities on the condensed consolidated balance sheets, netted with the corresponding notes payable balance.

 

 

With respect to all notes outstanding (other than the notes to related parties), interest expense, including the amortization of debt issuance costs and debt discount, for the three and six months ended June 30, 2023 and 2022 was $136,136 and $287,741, respectively, and $214,589 and $327,190, respectively.

 

We recognized a debt discount of $320,000 for 80,000 shares issued in conjunction with the 2020 Notes. The amortization of the debt discount, which will be recognized over the life of the 2020 Notes as interest expense, for the three and six months ended June 30, 2023 and 2022 was $6,400 and $17,778, and $26,667 and $53,333, respectively.