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NOTES PAYABLE
 6 Months Ended
Jun. 30, 2025
NOTES PAYABLE  
NOTES PAYABLE

NOTE 12 – NOTES PAYABLE

 

A summary of the Company’s third-party debt as of and for period ended June 30, 2025, and the year ended December 31, 2024 is presented below:

 

June 30, 2025

 

Trade

Facility

 

 

Third

Party

 

 

COVID

Loans

 

 

Total

 

Beginning balance, December 31, 2024

 

$1,397,385

 

 

 

2,557,023

 

 

 

154,505

 

 

 

4,108,913

 

Proceeds

 

 

-

 

 

 

1,348,900

 

 

 

-

 

 

 

1,348,900

 

Payments

 

 

(235,400 )

 

 

(551,218 )

 

 

(5,517 )

 

 

(792,135 )

Recapitalization of debt

 

 

-

 

 

 

(18,419 )

 

 

-

 

 

 

(18,419

 

Foreign currency translation

 

 

191,565

 

 

 

350,644

 

 

 

19,456

 

 

 

561,665

 

Ending balance, June 30, 2025

 

 

1,353,550

 

 

 

3,686,930

 

 

 

168,444

 

 

 

5,208,924

 

Notes payable - long-term

 

 

-

 

 

 

(1,922,344 )

 

 

(131,513 )

 

 

(2,053,857 )

Notes payable - short-term

 

$1,353,550

 

 

 

1,764,586

 

 

 

36,931

 

 

 

3,155,067

 

 

December 31, 2024

 

Trade

Facility

 

 

Third

Party

 

 

COVID

Loans

 

 

Total

 

Beginning balance, December 31, 2023

 

$1,908,195

 

 

 

2,511,148

 

 

 

186,884

 

 

 

4,606,227

 

Proceeds

 

 

-

 

 

 

828,080

 

 

 

-

 

 

 

828,080

 

Payments

 

 

(388,163 )

 

 

(634,653 )

 

 

(22,806 )

 

 

(1,045,622 )

Foreign currency translation

 

 

(122,647 )

 

 

(147,552 )

 

 

(9,573 )

 

 

(279,772 )

Ending balance, December 31, 2024

 

 

1,397,385

 

 

 

2,557,023

 

 

 

154,505

 

 

 

4,108,913

 

Notes payable – long-term

 

 

-

 

 

 

(1,437,798 )

 

 

(122,635 )

 

 

(1,560,433 )

Notes payable - short-term

 

$1,397,385

 

 

 

1,119,225

 

 

 

31,870

 

 

 

2,548,480

 

 

Our outstanding debt as of June 30, 2025 is repayable as follows:

 

 

 

June 30,

2025

 

2026

 

$3,136,647

 

2027

 

 

856,768

 

2028

 

 

632,699

 

2029

 

 

352,732

 

2030 and thereafter

 

 

211,659

 

Total debt

 

 

5,190,505

 

Less: notes payable - current portion

 

 

(3,155,067 )

Recapitalization of debt

 

 

18,419

 

Notes payable - long term portion

 

$2,053,857

 

Trade Facility Agreements

 

On May 12, 2017, SkyPharm entered into a Trade Finance Facility Agreement (the “TFF”) with Synthesis Structured Commodity Trade Finance Limited (the “Lender”) as amended on November 16, 2017, and May 16, 2018.

 

During the six-month period ended June 30, 2025, the Company made principal repayments totaling €200,000 (approximately $235,400). As of June 30, 2025, the Company had an outstanding principal balance of €1,150,000 ($1,353,550), which is fully classified as “Notes Payable” in the Company’s consolidated balance sheets.

 

June 23, 2020 Debt Agreement

 

On June 23, 2020, the Company’s subsidiary, Cosmofarm, entered into an agreement with the National Bank of Greece S.A. (the “Bank”) to borrow a maximum of €500,000 ($611,500). The outstanding balance was €29,412 ($34,618) and €88,235 ($91,232) as of June 30, 2025 and December 31, 2024, respectively, of which $34,618 and $91,232 was classified as “Notes payable”  respectively, on the accompanying consolidated balance sheets. During the six-month period ended June 30, 2025, the Company repaid €58,824 ($69,235) of the principal balance. 

 

November 19, 2020 Debt Agreement

 

On November 19, 2020, the Company entered into an agreement with a third-party lender in the principal amount of €500,000 ($611,500). During the six-month period ended June 30, 2025 the Company repaid €55,556 ($65,389) of the principal and as of June 30, 2025 the Company has accrued interest of €5,375($6,326) related to this note and a principal balance of €55,556 ($65,389), all of which is classified as “Notes payable” on the accompanying consolidated balance sheets.

 

July 30, 2021 Debt Agreement

 

On July 30, 2021, the Company entered into an agreement with a third-party lender in the principal amount of €500,000 ($578,850). During the isx-month period ended June 30, 2025, the Company repaid €57,279 ($67,417) of the principal. As of June 30, 2025 the Company had accrued interest of €16,727 ($19,688), principal of €149,064 ($175,448), of which $37,786 is classified as “Notes payable – long term portion” on the accompanying consolidated balance sheets.

 

June 9, 2022 Debt Agreement

 

On June 9, 2022 the Company entered into an agreement with a third-party lender in the principal amount of €320,000 ($335,008), the “Note”. During the six-month period ended June 30, 2025 the Company repaid €40,000 ($47,080) of the principal. As of June 30, 2025 and December 31, 2024 the Company has accrued interest of €2,316 ($2,726) and €8,352 ($8,645), respectively, and an outstanding balance of €140,000 ($164,780) and €180,000 ($186,318), respectively, of which $68,061 and $103,510, are classified as “Notes payable – long term portion” on the accompanying consolidated balance sheets.

July 14, 2023 Debt Agreement

 

On July 14, 2023, the Company entered into an agreement with a third-party lender in the principal amount of €1,000,000 ($1,123,700), the “Note”. During the six-month period ended June 30, 2025 the Company repaid €108,633 ($127,861) of the principal. As of June 30, 2025 and December 31, 2024 the Company has accrued interest of €6,083 ($7,160) and €16,735 ($17,322), respectively, and an outstanding balance of €706,117 ($831,099) and €814,750 ($843,348), of which $569,511 and $618,616, respectively, are classified as “Notes payable – long term portion” on the accompanying consolidated balance sheets.

 

Cloudscreen Promissory Note

 

On January 23, 2024, the Company completed the acquisition of Cloudscreen, a cutting-edge Artificial Intelligence (AI) powered platform. The total purchase price amounted to $637,080 and consisted of 280,000 shares of common stock with a fair value of $319,200 and an amount of $317,880 to be settled in cash during 2024 based on the Promissory Note signed on October 10, 2023. During the six-month period ended June 30, 2025 the Company repaid $22,421 of the principal. As of June 30, 2025, and December 31, 2024, the Company had an outstanding balance of $294,250 and $279,348 all of which is classified as “Notes payable” on the accompanying consolidated balance sheets.

 

July 29, 2024 Debt Agreement

 

On July 29, 2024 the Company entered into an agreement with a third-party lender in the principal amount of €400,000 ($432,760), the “Note”. During the six-month period ended June 30, 2025, the Company repaid principal of €22,222($26,156). As of June 30, 2025, and December 31, 2024 the Company had an outstanding balance of €377,778 ($444,644) and €400,000 ($414,040), of which $340,022 and $345,033 is classified as “Notes payable - long term portion” on the accompanying consolidated balance sheets.

 

December 20, 2024 Debt Agreement

 

On December 20, 2024 the Company entered into an agreement with a third-party lender in the principal amount of €400,000 ($414,040), the “Note”. During the six-month period ended June 30, 2025, the Company repaid principal of €66,667($78,467). As of June 30, 2025, and December 31, 2024 the Company has accrued interest of €1,641 ($1,932) and €794 ($821), respectively, and an outstanding balance of €333,333 ($392,333) and €400,000 ($414,040), of which $247,843 and $276,027 is classified as “Notes payable - long term portion” on the accompanying consolidated balance sheets.

 

January 27, 2025 Debt Agreement

 

On January 27, 2025, the Company entered into a bond loan agreement with Attica Bank, providing for maximum borrowings of up to €2,200,000 ($2,357,120). Under the terms of the facility, the Company received initial proceeds of €700,000 ($749,600), which were classified as Notes Payable in the Company’s consolidated financial statements. The remaining borrowing capacity of €1,500,000 ($1,619,400) is available to the Company on a revolving basis, subject to the provision of qualifying checks receivable as collateral. These subsequent drawdowns are classified as Lines of Credit due to their secured and contingent nature. The facility bears interest at a floating rate of 2.95% plus the applicable 6-month Euribor (2.331% as of June 30, 2025). The Note Payable portion of the facility is to be repaid in 10 equal semiannual installments of €70,000 commencing on July 27, 2026. During the 3-month period ended June 30, 2025, the Company repaid no principal. As of June 30, 2025, and December 31, 2024 the Company has accrued interest of €12,091($14,231) and €0 ($0), respectively, and an outstanding balance of €700,000 ($755,720) and €0 ($0), of which $659,120 and $0 is classified as “Notes payable - long term portion” on the accompanying consolidated balance sheets.

 

COVID-19 Loans

 

On May 12, 2020, the Company’s wholly owned subsidiary, SkyPharm SA, was granted a loan from the Greek government in the amount of €300,000 (approximately $366,900). During the six-month period ended June 30, 2025, an additional principal repayment of €4,688 (approximately $5,061) was made. As of June 30, 2025, and December 31, 2024 the Company has an outstanding balance of €98,438 ($115,861) and €103,125 ($106,745), of which $86,031 and $87,337 is classified as “Notes payable - long term portion” on the accompanying consolidated balance sheets.

 

On June 24, 2020, the Company’s subsidiary, Decahedron, received a loan £50,000 ($68,310) from the UK government. As of June 30, 2025, and December 31, 2024 the Company has an outstanding balance of £38,320 ($52,583) and £ 38,144 ($47,761), of which $34,329 and $43,239 is classified as “Notes payable - long term portion” on the accompanying consolidated balance sheets.

 

None of the above loans were made by any related parties.