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Government Assistance Notes Payable

3 Months Ended

Mar. 31, 2022

8. Government Assistance Notes Payable

On March 31, 2022, and December 31, 2021, the notes payable balances and accrued interest payable are as follows:

Schedule of Notes Payable

	March 31,			December 31,
	2022			2021

Paycheck Protection Loan	$	-		$	1,025,535
Economic Injury/Disaster Loans		664,500			650,000
Total principal balance		664,500			1,675,535
Accrued interest		26,764			25,321
Total principal and accrued interest		691,264			1,700,856
Less current portion		(40,000	)		(11,115	)
Non-current portion	$	651,264		$	1,689,741

Paycheck Protection Note Payable

On March 22, 2021, the Company received loan proceeds of $1,025,535 pursuant to the Paycheck Protection Program (2nd draw). The note payable was scheduled to mature in March 2026, bears interest at the rate of 1% per annum, and is subject to the terms and conditions applicable to loans administered by the SBA under the CARES Act. The loan and accrued interest payable are forgivable provided the Company uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels.

Effective February 28, 2022, the Company received formal notice that the note payable, including accrued interest of $9,743, was forgiven. As a result, the gain from the forgiveness of the government assistance notes payable aggregating $1,025,535 was recognized in the statement of operations during the three months ended March 31, 2022.

Economic Injury Disaster Loans (EIDL):

On June 17, 2020, the Company received $150,000 of proceeds applicable to loans administered by the SBA as disaster loan assistance under the Covid-19 Economic Injury Disaster Loan (EIDL) Program. On July 14, 2021, the Company received an additional $350,000 of proceeds pursuant to the loan. On July 21, 2020, the Company received $150,000 of proceeds applicable to loans administered by the SBA as disaster loan assistance under the Covid-19 EIDL Program. On January 31, 2022, the Company assumed an additional $14,500 EIDL, and accrued interest of $900, as part of the consideration paid for the acquisition of GameIQ (see Note 3)

The loans bear interest at 3.75% per annum, with a combined repayment of principal and interest of $3,500 per month beginning 12 months from the date of the promissory note over a period of 30 years. As of March 31, 2022, and December 31, 2021, the note payable had a principal balance outstanding of $664,500 and accrued interest payable of $26,764 and $25,321 respectively.