| Interest, advances and promissory notes payable |
4.
Interest, advances and promissory notes payable
a) Promissory
notes payable to related parties
A
summary of activities of promissory notes payable to related parties is as follows:
| Summary of activities of promissory notes payable | |
| | |
| | |
| | |
| Promissory Notes Payable to Related Parties | |
Carrying Value |
| Balance, December 31, 2020 | |
$ | 3,031,966 | |
| Transferred from promissory notes payable pursuant to private transaction | |
| 10,000 | |
| Balance, December 31, 2021 | |
| 3,041,966 | |
| Promissory notes received | |
| 50,000 | |
| Balance, June 30, 2022 | |
$ | 3,091,966 | |
A
summary of the promissory notes payable to related parties is as follows:
| Schedule of activity of promissory notes payable to related parties | |
| | | |
| | |
| Promissory Notes Payable to Related Parties | |
June 30, 2022 | |
December 31, 2021 |
| Promissory notes payable to relatives of directors collateralized by a general security agreement over all the assets of the Company, past maturity: | |
| | | |
| | |
| i. Interest at 1% per month | |
$ | 720,619 | | |
$ | 720,619 | |
| ii. Interest at 1.25% per month | |
| 51,347 | | |
| 51,347 | |
| iii. Interest at the U.S. bank prime rate plus 1% | |
| 100,000 | | |
| 100,000 | |
| iv. Interest at 0.5% per month | |
| 695,000 | | |
| 695,000 | |
| | |
| | | |
| | |
| Unsecured promissory notes payable to relatives of the Chairman with fixed amounts of interest due August 31, 2022 | |
| 50,000 | | |
| — | |
| | |
| | | |
| | |
| Promissory notes payable, unsecured, to relatives of a director, bearing interest at 1% per month, past maturity | |
| 1,475,000 | | |
| 1,475,000 | |
| Total Promissory Notes Payable to Related Parties | |
$ | 3,091,966 | | |
$ | 3,041,966 | |
| | |
| | | |
| | |
The
Company received advances from relatives of the Chairman aggregating $50,000, with a fixed interest amount of $4,000, which will mature
and be repayable on August 31, 2022.
All
amounts past maturity continue to accrue interest at their stated rates and are considered due on demand.
b) Promissory
notes payable to unrelated parties
A
summary of activities of promissory notes payable to unrelated parties is as follows:
| Schedule of Promissory Notes Payable to Unrelated Parties | |
| | |
| Promissory Notes Payable to Unrelated Parties | |
Carrying Value |
| Balance, December 31, 2020 | |
$ | 2,254,353 | |
| Reclassified to interest payable | |
| (10,985 | ) |
| Extinguished through issuance of shares of common stock (note 6) | |
| (20,000 | ) |
| Transferred to promissory notes payable pursuant to private transaction | |
| (10,000 | ) |
| Balance, December 31, 2021 | |
| 2,213,368 | |
| Promissory notes received | |
| 244,358 | |
| Balance, June 30, 2022 | |
$ | 2,457,726 | |
A
summary of the promissory notes payable to unrelated parties is as follows:
| Schedule of activity of promissory notes payable to unrelated parties |
|
|
|
|
| Promissory
Notes Payable to Unrelated Parties |
June
30,
2022 |
December 31,
2021 |
| Unsecured
promissory notes payable to unrelated lenders, past maturity: |
|
|
|
|
| i.
Interest at 1% per month |
$ |
1,317,456 |
$ |
1,317,456 |
| ii.
Interest at 0.667% per month |
|
425,000 |
|
425,000 |
| iii.
Interest at 0.625% per month |
|
150,000 |
|
150,000 |
| iv.
Non-interest-bearing |
|
270,912 |
|
270,912 |
| |
|
|
|
|
| Unsecured promissory notes
payable to unrelated lenders with fixed amounts of interest due August 31, 2022 |
|
244,358 |
|
- |
| |
|
|
|
|
| Promissory
notes payable, secured by a guarantee from the Chief Executive Officer, bearing interest at 1% per month, past maturity |
|
50,000 |
|
50,000 |
| Total
Promissory Notes Payable to Unrelated Parties |
$ |
2,457,726 |
$ |
2,213,368 |
| |
|
|
|
|
|
|
|
The
Company received advances from two shareholders aggregating SGD$340,000 ($244,358), with a fixed interest amount of $10,000, which will
mature and be repayable on August 31, 2022. The principal amount of SGD$150,000 was repaid to one shareholder in July 2022.
All
amounts past maturity continue to accrue interest at their stated rates and are considered due on demand.
c) Interest
payable
A
summary of the interest payable activity is as follows:
| Schedule of interest payable activity | |
| | |
| Interest Payable | |
Carrying Value |
| Balance, December 31, 2020 | |
$ | 3,575,326 | |
| Reclassified from promissory notes payable | |
| 10,985 | |
| Interest incurred on promissory notes payable | |
| 527,336 | |
| Interest payable retired through issuance of shares | |
| (3,000 | ) |
| Balance, December 31, 2021 | |
| 4,110,647 | |
| Interest incurred on promissory notes payable | |
| 277,421 | |
| Balance, June 30, 2022 | |
$ | 4,388,068 | |
Interest
payable is due to related and non-related parties as follows:
| Schedule of Interest payable due to related and non-related parties | |
| | | |
| | |
| Interest Payable | |
June 30, 2022 | |
December 31, 2021 |
| Related parties | |
$ | 1,362,918 | | |
$ | 1,200,170 | |
| Unrelated parties | |
| 3,025,150 | | |
| 2,910,477 | |
| Interest payable | |
$ | 4,388,068 | | |
$ | 4,110,647 | |
The
payment terms, security and any interest payable are based on the underlying promissory notes payable that the Company has outstanding.
d) Interest
expense
During
the period ended June 30, 2022, the Company incurred interest expense of $1,109,764 (2021 - $2,283,770) as follows:
| · | $Nil
(2021 - $1,287,834) incurred related to the modification of options held by the Chairman
and his spouse that were granted in connection with financing provided to the Company; |
| · | $777,515
(2021 - $670,452) incurred on lines of credit payable as shown in note 5; |
| · | $277,421
(2021 - $264,100) incurred on promissory notes (notes 4(a) and 4(b)); |
| · | $52,271
(2021 - $60,059) incurred from the calculation of imputed interest on accounts payable
outstanding for longer than one year, advances payable and promissory notes payable, which
had no stated interest rate; and |
| · | $2,557
(2021 - $1,325) interest on other items. |
|