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DUE TO FIRST INSURANCE FUNDING
 12 Months Ended
Dec. 31, 2021
Due To First Insurance Funding  
DUE TO FIRST INSURANCE FUNDING

NOTE－15 DUE TO FIRST INSURANCE FUNDING

On October 7, 2021, the Company purchased the Directors and Officers (D&O) insurance at a premium fee of $990,000 for a term of 12 months. Also, the Company entered a loan agreement with First Insurance Funding to finance 75% of the total premium, to repay the premium of $990,000. The Company paid the down-payment of US$247,500 (25%) and remaining balance $742,500 (75%) to be repaid by 10 installments until August 7, 2022.

The effective interest rate 5.35%. For the years ended December 31, 2021 and 2020 the Company recognized the amortization of interest expense of $5,023 and $-0-, respectively.

During the year ended December 31, 2021 the Company has repaid the installments for $151,476 and the balance outstanding remained $596,047at December 31, 2021.

Future contractual amortization of debt as of December 31, 2021

The below table summarizes our (i) minimum payments in the next twelve months, (ii) implied interest, and (iii) present value of future payments in the next twelve months:

Schedule of Future contractual amortization of debt 

     
Year ending December 31,  Future payment
2022  $605,907 
Less: imputed interest   (9,860)
Present value of first insurance funding – current liability  $596,047