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Notes Payable
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Notes Payable

10. Notes Payable

 

Notes payable consist of the following at December 31, 2024 and 2023:

 

   December 31, 2024   December 31, 2023 
   Successor 
   December 31, 2024   December 31, 2023 
CardCash acquisition notes payable  $1,500,000   $1,500,000 
GameIQ acquisition note payable   75,928    102,199 
Economic Injury Disaster Loans (EIDL) note payable   664,500    664,500 
Total principal balance   2,240,428    2,266,699 
Accrued interest   92,204    28,080 
Total principal and accrued interest   2,332,632    2,294,779 
Less current portion   (1,717,632)   (836,509)
Non-current portion  $615,000   $1,458,270 

 

CardCash Acquisition Notes Payable

 

On December 29, 2023, the Company issued two-year promissory notes totaling $1,500,000 as partial consideration for the acquisition of CardCash (see Note 3). $750,000 is payable on December 29, 2024 (see Note 14), bearing simple annual interest of 5%, and $750,000 is to be paid upon the earlier of (a) the completion of a firm commitment underwriting the Company’s initial public offering to allow the Company to become listed on the Nasdaq Capital Market or (b) December 29, 2025. As of December 31, 2023, the notes payable had an aggregate principal balance outstanding of $1,500,000. As of December 31, 2024, the notes payable had an aggregate principal balance outstanding of $1,500,000 and accrued interest payable of $75,000.

 

GameIQ Acquisition Note Payable

 

On February 1, 2022, the Company issued two notes payable for the purchase of GameIQ, one for $78,813 and another for $62,101. In accordance with Notes, the Company promised to pay the principal together with interest at 1% upon the earlier of (i) nine equal biannual installments with the first installment due on October 1, 2022, and the final payment due February 1, 2025 (the “Maturity Date”).

 

As of December 31, 2023, the notes payable had an aggregate principal balance outstanding of $102,199 and accrued interest payable of $821. As of December 31, 2024, the notes payable had an aggregate principal balance outstanding of $75,928 and accrued interest payable of $1,646 (see Note 14).

 

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.

 

 

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 December 31, 2023, the note payable had a principal balance outstanding of $664,500 and accrued interest payable of $27,259. As of December 31, 2024, the note payable had a principal balance outstanding of $664,500 and accrued interest payable of $15,558.