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Notes Payable – Unrelated Parties
 9 Months Ended
Sep. 30, 2024
Nonrelated Party [Member]  
Defined Benefit Plan Disclosure [Line Items]  
Notes Payable – Unrelated Parties

7. Notes Payable – Unrelated Parties

 

Summary of Notes Payable to Unrelated Parties

 

The tables below summarize all notes payable at September 30, 2024 and December 31, 2023, respectively, other than the related party notes disclosed in Note 8 “Notes Payable - Related Parties.”

 

   September 30, 2024   December 31, 2023 
Notes payable – “2022 Unrelated Notes”  $807,331   $2,364,500 
Less unamortized debt issuance costs   (31,744)   (155,258)
Long-term portion of notes payable  $775,587   $2,209,242 

 

The principal terms of the 2022 Unrelated Notes, which are subordinated notes, as of September 30 are as follows:

Schedule of Subordinated Notes 

 

Issue Date  Interest Rate   Interest Due   Principal Due  
April 1, 2022   12%  Quarterly   December 31, 2025  

 

Future minimum principal payments of the Notes Payable to Unrelated Parties of $807,331 are due on December 31, 2025. As of September 30, 2024 and December 31, 2023, accrued interest for these notes payable with the exception of the related party notes in Note 8, “Notes Payable - Related Parties,” was $0. As of September 30, 2024 and December 31, 2023, unamortized deferred financing costs were reflected within long term liabilities on the condensed consolidated balance sheets, netted with the corresponding notes payable balance.

 

In July 2024, a principal amount of $250,000 of the 2022 Unrelated Notes were sold by the unrelated noteholder to related parties at face value. See Note 8.

 

 

With respect to all notes outstanding (other than the notes to related parties), interest expense, including the amortization of debt issuance costs, for the three and nine months ended September 30, 2024 and 2023 was $76,681 and $284,565, respectively, and $124,753 and $412,494, respectively.