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LOANS PAYABLE AND LINES OF CREDIT
 9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
LOANS PAYABLE AND LINES OF CREDIT

NOTE 11 – LOANS PAYABLE AND LINES OF CREDIT

 

Loans Payable

 

Loans payable was as follows:

 

   Interest Rate  Maturities   September 30, 2022   December 31, 2021 
                
Term loans (US dollar denominated)  5.00% – 6.00%  2023 - 2027   $5,639,096   $478,712 
Term loans (Chilean peso denominated)  3.48% - 19.20%  2022 - 2031    6,061,500    5,018,788 
            11,700,596    5,497,500 
Less current portion           (7,235,352)   (213,199)
Long term loans payable          $4,465,244   $5,284,301 

 

In June 2022, we entered into bridge loans, secured by substantially all of our assets, in the principal amount of $5,000,000 bearing an interest rate of 4.00% per annum payable monthly with a maturity date of December 14, 2022. These bridge loans are guaranteed by our assets. We recorded interest expense of $51,111 and $60,000 during the three and nine months ended September 30, 2022, respectively.

 

Various subsidiaries in the United States are borrowers under certain term loans. These term loans require monthly principal and interest payments. These term loans are secured by various assets owned by our subsidiaries. We recorded aggregate interest expense of these term loans of $13,985 and $65,972 for the three and nine months ended September 30, 2022, respectively.

 

Our Chilean subsidiary, Arkavia, is the borrower under certain term loans denominated in Chilean Pesos. These term loans require monthly principal and interest payments. These term loans are secured by various assets owned by our subsidiaries. We recorded aggregate interest expense on these term loans of $40,711 and $102,596 for the three and nine months ended September 30, 2022, respectively.

 

 

Debt Assumed through Acquisition

 

As part of the True Digital Acquisition, we assumed $1,008,566 of debt previously held by True Digital. This debt was comprised of a revolving line of credit and four separate term loans. We repaid three of the four term loans during the nine months ended September 30, 2022. The line of credit matured and was repaid in full on August 9, 2022, and the outstanding term loan matures in February 2027. The line of credit had an interest rate 3.25% per annum.

 

We assumed $2,716,167 of debt held by CUATROi and NLT Secure as part of their respective acquisitions, which was comprised of multiple separate terms loan secured by the assets of CUATROi and NLT Secure. These loans mature through November 2031 and had interest rates between 3.48% and 19.20%.

 

Convertible Notes Payable

 

In October 2021, we issued a convertible note in the principal amount of $1,500,000 bearing an interest rate of 5.00% per annum payable at maturity with a maturity date of January 27, 2022, with a conversion price of $5.00 per share. On October 21, 2022, we entered into an amendment to the note pursuant to which the maturity date was extended to December 31, 2023. The outstanding principal of this note was $1,500,000 at September 30, 2022.

 

In June 2022, we entered into an unsecured convertible note in the principal amount of $1,000,000 bearing an interest rate of 5.00% per annum payable monthly with a maturity date of June 2023, with a conversion price of $7.65 per share. The outstanding principal of this note can be redeemed at any time by us or at maturity at 105%. The outstanding principal of this note was $1,000,000 at September 30, 2022.

 

Future minimum payments under the above line of credit and loans payable due as of September 30, 2022 were as follows:

      
2022 (remainder of)  $5,815,709 
2023   4,341,115 
2024   1,231,461 
2025   1,007,017 
2026   601,371 
Thereafter   1,253,923 
Total future minimum payments   14,250,596 
Less: current   (8,285,352)
Long term debt, net of current portion    $5,965,244