Debt

A summary of the Company's debt at

March 31, 2021

and

December 31, 2020,

by counterparty, is as follows:

Loan Description	3/31/2021			12/31/2020

$1,000,000 12% Senior secured note due November 12 2022	$	1,000,000		$	1,000,000

$130,200 loan bearing interest at 1% per annum maturing May 1, 2022 issued under the Payroll Protection Program		130,200			130,200

$108,000 Related party note payable due November 30, 2020		859			859

$385,000 8% convertible note payable due July 2021		179,772			318,012

$165,000 8% convertible note payable due July 2021		75,436			133,405
Miscellaneous equipment loans		573			1,405
		1,386,840			1,583,881
Less unamortized discount and debt issuance costs		(189,265	)		(294,119	)
Total notes payable	$	1,197,575		$	1,289,762
Current portion of long-term debt		294,113			399,614
Long-term portion	$	903,462		$	890,148

Notes Payable

May 1, 2020,

pursuant to the Paycheck Protection Program under the Coronavirus Aid Relief and Economic Security Act (“CARES Act”) the Company was awarded a loan of

$130,200.

The loan carries an interest rate of

and matures on

May 1, 2022.

The Company

may

apply for loan forgiveness following SBA guidelines and a portion or all of the loan

may

be forgiven.

November 12, 2020,

the Company executed a Loan Agreement with certain Lenders (“the Lenders”) and FVP Servicing LLC, as agent for the Lenders in connection with the issuance of a Note in the amount of

$1,000,000

bearing interest at

12%

per annum with an initial maturity of

November 12, 2022.

Simultaneously, with the execution of the Loan Agreement, the Company also entered into an agreement with an affiliate of FVP to provide certain credit and debit card processing services for the Company, which services will continue for a period of

one

year after the loan is repaid and contains a right of

first

refusal to continue to provide such services in the future subject to certain limitations. Mr. Kepler executed a guaranty in favor of FVP in connection with the loan. Proceeds from the loan were used to repay the existing senior secured loan balance of

$100,000

along with accrued interest, certain outstanding trade payables in the amount of

$133,880

and for general working capital purposes. In addition, the Company granted the Lender a security interest in substantially all of its assets.

Notes Payable, related party

December 6, 2018,

Mr. Kepler, advanced

$108,000

to the Company for payment to a

third

party note holder in exchange for an unsecured promissory note. During the year ended

December 31, 2020

the Company repaid

$107,141

in principal, reducing the balance due as of

March 31, 2021

$859.

Convertible Notes Payable

May 21, 2019,

the Company issued an

Fixed Convertible Promissory Note payable to a

third

party with a face value of

$385,000,

which included an original issue discount of

10%

on the investment amount. On

July 17, 2019,

the Company issued another

Fixed Convertible Promissory Note with a face value of

$165,000

which also included am original discount of

10%

on the investment amount. The

two

notes contain substantially identical terms. The Company recorded the value of the notes conversion feature in the amount of

$342,308

at inception. The Company defaulted on the notes and incurred default fees of

$57,750

and

$24,750

for the years ended

December 31, 2019

and

2020,

respectively which amounts were added to the principal balance.

July 10, 2020,

the Company entered into Forbearance and Note Settlement Agreements (“Agreements”) with the holders of the

Fixed Convertible Promissory Notes agreeing to take

further action to avail themselves of the remedies of default defined in the Notes. The Agreements stipulate the Company remit payment of all accrued interest and principal outstanding beginning on

July 20, 2020

for

thirteen

agreed upon payments and until the note is repaid in full. Upon execution of these Agreements, effectively extinguishing the above-described notes, the Company recognized a cancellation of the derivative liability previously related to the conversion feature of

$522,065.

As additional consideration for the Agreements, the holders were issued warrants to purchase up to

360,000

shares of the Company's Common Stock at a price of

$1.00

per share, exercisable beginning

January 10, 2021

and expiring on

July 10, 2025.

The fair value of the warrant at the date of issuance was

$371,243,

and was reflected in paid in capital and the related debt discount is being amortized over the term of the Agreements.