XML 25 R13.htm IDEA: XBRL DOCUMENT v3.25.3
Debt Obligations
 9 Months Ended
Sep. 30, 2025
Debt Obligations  
Debt Obligations

Note 6 – Debt Obligations

 

Note Payable

 

During the nine months ended September 30, 2025, we purchased approximately $48,200 of equipment with a note payable. The note bears interest at 10.75% and requires fixed payments of principal and interest of $1,042 for sixty months. As of September 30, 2025, the outstanding principal balance was $45,082 of which $7,347 will be repaid within the next twelve months and has been presented as a current liability.

 

At September 30, 2025, future principal payments on the note payable for the years ending December 31, will be as follows:

 

2025 (remaining)

 

$1,933

 

2026

 

 

8,270

 

2027

 

 

9,204

 

2028

 

 

10,244

 

2029

 

 

11,401

 

Thereafter

 

 

4,030

 

 

 

$45,082

 

 

Secured Promissory Note

 

On September 30, 2025, the Company executed a $600,000 short-term secured promissory note (the “Short-Term Note”). The Short-Term Note requires repayment of $630,000 on the maturity date of January 2, 2026. The Short-Term Note is secured by certain outstanding receivables of the Company. The lender of the Short-Term Note also received a warrant to purchase 100,000 shares of common stock at $1.25 for a period of four years. We computed the fair value of the warrant using a Black-Scholes option pricing model and the following inputs: stock price $0.29, expected term 4 years, volatility 96.00%, risk-free rate of 3.68%, and dividend rate of 0.00%.  The value of the warrant upon issuance was not significant. The outstanding principal balance of $600,000 has been presented within current liabilities on the accompanying consolidated balance sheets.

 

Financing Liability

 

In July 2025, we entered into a financing agreement to finance $207,531 of insurance premiums due on various policies. The financed amount is due in fixed monthly payments of $19,808 for a period of eleven months and bear interest at 9.85%. The balance of $171,173 remaining on this financing liability has been presented within current liabilities on the accompanying consolidated balance sheets.