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Loans and Notes Payable

9 Months Ended

Sep. 30, 2023

Note 7. Loans and Notes Payable

Loans and notes payable and their maturities consist of the following:

Schedule of loans and notes payable
	September 30,		December 31,
	2023		2022
Various promissory notes and convertible notes	$	50,960	$	50,960
Novus Capital Group LLC Note (a)		171,554		171,554
National Buick GMC		15,786		16,006
Blue Ridge Bank		410,200		410,200
Small Business Administration		299,900		299,900
Al Dali International for Gen. Trading & Cont. Co.(b)		948,687		-
RSF, LLC (c)		500,000		-
Various variable interest promissory notes (d)		-		1,325,000
Total Notes Payable	$	2,397,087	$	2,273,620

Loans and notes payable, current	$	529,366	$	542,374
Loans and notes payable, current attributed to variable interest entity		-		1,325,000
Loans and notes payable, long term	$	1,867,721	$	406,246


	September 30,		December 31,
	2023		2022
Various variable interest promissory notes- related parties (c)	$	1,651,845	$	899,500
Jorgan Development, LLC		27,519,044		27,977,704
Triple T Notes		365,857		342,830
Total Notes Payable- related parties	$	29,536,746	$	29,220,034

Loans and notes payable, current- related parties	$	12,554,172	$	342,830
Loans and notes payable, current attributed to variable interest entity- related parties		300,000		599,500
Loans and notes payable attributed to variable interest entity- related parties		1,351,845		300,000
Loans and notes payable, long term- related parties	$	15,330,729	$	27,977,704

The following table sets forth the estimated payment schedule of long-term debt (net of debt discount) as of September 30, 2023:


2023	$	529,366
2024		13,872,226
2025		17,260,449
2026		33,640
2027		17,232
Thereafter		220,920
Total	$	31,933,833

(a)	In 2017, the Company acquired assets, including patents, in the amount of $4,931,380 in which the Company also agreed to assume the encumbering debt in the amount of $334,775. The debt currently accrues interest at 10% per annum. In November 2021, the lender agreed to extend the maturity of the note to April 1, 2022. On April 1, 2022, the lender agreed to extend the maturity of the note to April 1, 2023 with an initial payment of $52,448 and approximate monthly payment of $29,432 thereafter until the note is fully paid. As of the date of this report, we are currently renegotiating the terms of this debt.
(b)	On June 20, 2023, we issued a 15% secured promissory note due to Al Dali International for Gen. Trading & Cont. Co., a company organized under the laws of Kuwait (“DIC”), in the principal amount of up to $1,950,000. As security to secure repayment of the Note, we issued DIC an option to purchase 1,000,000 shares of our common stock at an exercise price of $1.179 per share, which was recorded as a debt discount in the amount of $467,509, which is amortized to interest expense over the term of the agreement using the effective interest method. We also granted DIC a security interest in our Trial Remediation Processing Center (“RPC”) that is currently on-site at the DIC facility in Kuwait. We will repay the amounts due under the note from the operations of the RPC. In order to repay the amounts due under the note, DIC will deduct $12 per ton of material we process from the amounts due to us until all amounts due under the note have been repaid.
(c)	On July 25, 2023, RSF, LLC loaned the Company $500,000 under the terms of a 10% Convertible Promissory Note. Under the terms of the note, interest accrues at 10% per annum, and matures two years from the date of issuance. The note is convertible into shares of our common stock at $2.50 per share, unless such conversion would cause the investor to own more than 4.9% of our outstanding common stock.
(d)	The balance of these various promissory notes are related to the special purchase vehicle, Viva Wealth Fund I, LLC (VWFI) of which the balance primarily related to an offering up to $25,000,000 in convertible notes in a private offering, which was closed on March 31, 2023. During the nine months ended September 30, 2023, an additional $1,980,000 has been raised in relation this offering, and $3,305,000 of this debt has been converted into units of the LLC. VWFI has also entered into various master revolving notes outside of the offering: an additional $765,000, was raised from a related party as of September 30, 2023, which accrues 6% interest per annum, has a maturity date of October 11, 2024, where no payments are made prior to the maturity date unless at the option of the fund. For the nine months ended September 30, 2023, we made a cash payment of $12,655 on the principal of the revolving note.