XML 27 R17.htm IDEA: XBRL DOCUMENT v3.22.2.2
NOTES PAYABLE
 9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
NOTES PAYABLE

NOTE 10 –NOTES PAYABLE

 

Convertible Notes

 

As of September 30, 2022, and December 31, 2021, the Company has convertible note payable in the amount of $20,000 and $100,000 which is included within convertible notes payable. See Note 14 – Commitments and Contingencies – Litigation, Claims and Assessments for details related to the convertible note payable.

 

Other Notes Payable

 

On October 10, 2019, the Company issued a note payable in connection with the acquisition of the franchisee location in the amount of $300,000. The note has a stated interest rate of 8% with monthly payments payable over 5 years.

 

On May 9, 2020, the Company entered into a Paycheck Protection Program Promissory Note and Agreement with Greater Nevada Credit Union, pursuant to which the Company received loan proceeds of $866,300 (the “PPP Loan”). The PPP Loan was made under, and is subject to the terms and conditions of, the PPP which was established under the CARES Act and is administered by the U.S. Small Business Administration.

 

 

MUSCLE MAKER, INC. AND SUBSIDIARIES

 

Notes to Unaudited Condensed Consolidated Financial Statements

 

NOTE 10 –NOTES PAYABLE, continued

 

Other Notes Payable, continued

 

On June 21, 2021, the U.S. Small Business Administration (the “SBA”) forgave the Company’s first Paycheck Promissory Note (“PPP loan”) entered into on May 9, 2020. The aggregate amount forgiven is $875,974, consisting of $866,300 in principal and $9,674 in interest expenses. The forgiven amount was accounted for as a gain on debt extinguishment of $875,974 and was recorded in our condensed consolidated statement of operations.

 

During the year ended December 31, 2021, as part of the Pokemoto acquisition, the Company acquired $1,171,400 loans issued by the Small Business Administration under its Economic Injury Disaster Loans (“EIDL”). The Company repaid all the loans in full during the year ended December 31, 2021.

 

During the year ended December 31, 2021, as part of the Pokemoto acquisition the Company acquired $291,053 in paycheck protection loans second draw (the “PPP 2 Loan”). The SBA forgave $0 and $139,877 in principal and $0 and $1,402 in interest expense during the three and nine months ended September 30, 2022, respectively.

 

During the nine months ended September 30, 2022, and 2021, the Company repaid a total amount of $97,501 and $1,249,541 respectively, of the other notes payable.

 

As of September 30, 2022, the Company had an aggregate amount of $932,292 in other notes payable. The notes had interest rates ranging between 3.75% - 8% per annum, due on various dates through May 2026.

 

The maturities of notes payable as of September 30, 2022, are as follows:

 

   Principal 
Repayments due as of  Amount 
09/30/2023  $240,091 
09/30/2024   146,936 
09/30/2025   87,730 
09/30/2026   559,993 
09/30/2027   - 
Long term debt  $1,034,750