XML 30 R20.htm IDEA: XBRL DOCUMENT v3.23.2
Convertible Promissory Notes and Loans Payable (Tables)
 6 Months Ended
Jun. 30, 2023
Debt Instrument [Line Items]  
Schedule of Convertible Debentures

Convertible promissory notes consisted of the following at June 30, 2023:

 

Origination
Date		  Maturity
Date		  Interest
Rate		   Origination
Principal
Balance		   Original
Discount
Balance		   Period
End
Principal
Balance		   Period
End
Discount
Balance		   Period
End
Balance,
Net		   Accrued
Interest
Balance		   Reg. 
9/03/21  9/03/24       8%   346,500    (12,355)  $346,500   $(4,922)  $341,578           -    (1)
9/03/21  9/03/24   8%   3,500    (125)   3,500    (52)   3,448    -    (2)
9/30/22  Demand   8%   66,793    (19,245)   63,746    (14,470)   49,276    -    (3)
                     $413,746   $(19,444)  $394,302   $-      
Schedule convertible promisory notes

A breakdown of current and long-term amounts due are broken down as follows for the convertible prommisory notes as of June 30, 2023:

Schedule convertible promisory notes

   Summit Holdings V, LLC Note   Tierra Vista Partners, LLC Note   Robert Carmichael Note   Total 
2023  $-   $-   $63,746   $63,746 
2024   346,500    3,500    -    350,000 
Discount   (4,922)   (52)   (14,470)   (19,444)
Total Loan Payments  $341,578   $3,448   $49,276   $394,302 
Current Portion of Loan Payable  $-   $-   $(49,276)  $(49,276)
Non-Current Portion of Loan Payable  $341,578   $3,448   $-   $345,026 

 

(1) On September 3, 2021, the Company issued a three-year 8% convertible promissory note in the principal amount of $346,550 to Summit Holding V, LLC as part of the acquisition of SSI. The Company is required to make quarterly payments under the note in an amount equal to 50% of the adjusted net profit of SSI. Interest is payable quarterly in shares of common stock of the Company at a conversion price of $0.051272 per share. The note holder may convert outstanding principal and interest into shares of common stock at a conversion price of $0.051272 per share at any time during the term of the note. The Company recorded $12,355 for the beneficial conversion feature. This note is classified as a long-term liability for this period.
Schedule of Future Amortization of Loans Payable

 

   

Mercedes

BMG (1)

  

Navitas

BLU3 (2)

  

NFS

SSI (3)

  

Navitas 2022

BLU3 (4)

   Total 
2023 (6 months)   $5,583   $6,929   $11,567   $9,572   $33,651 
2024    11,168    16,629    26,279    21,228    75,304 
2025    8,687    18,024    12,328    23,610    62,649 
2026    -    6,007    -    -    6,007 
Total Loan Payments   $25,438   $47,589   $50,174   $54,410   $177,611 
Current Portion of Loan Payable   $(11,169)  $(15,972)  $(24,152)  $(20,128)  $(71,421)
Non-Current Portion of Loan Payable   $14,269   $31,617   $26,022   $34,282   $106,190 

 

1) On August 21, 2020, the Company executed an installment sales contract with Mercedes Benz Coconut Creek for the purchase of a 2019 Mercedes Benz Sprinter delivery van. The installment agreement is for $55,841 with a zero interest rate payable over 60 months with a monthly payment of $931 and is personally guaranteed by Mr. Carmichael. The loan balance as of June 30, 2023 was $25,349 and $31,023 as of December 31, 2022.

 

(2) On May 19, 2021, BLU3, executed an equipment finance agreement with Navitas Credit Corp. (“Navitas”) to finance the purchase of certain plastic molding equipment. The amount financed is $75,764 payable over 60 equal monthly installments of $1,611 (the “Navitas 1”). The equipment finance agreement contains customary events of default. The loan balance as of June 30, 2023 was $47,589 and $54,930 as of December 31, 2022.
   
(3) On June 29, 2022, SSI executed an equipment financing agreement with NFS Leasing (“NFS Leasing”) to secure replacement production molds. The total purchase price of the molds was $84,500 of which $63,375 was financed by NFS Leasing on August 15, 2022. The financing agreement has a 33 month term beginning in August 2022 with a monthly payment of $2,571. The financing agreement contains customary events of default, is guaranteed by the Company and NFS Leasing has a lien on all of the assets of SSI. The loan balance as of June 30, 2023 and December 31, 2022 was $50,174 and $60,804, respectively.
   
(4) On December 12, 2022, BLU3 executed an equipment finance agreement to finance the purchase of certain plastic molding equipment through Navitas Credit Corp. (“Navitas”). The amount financed is $63,689 payable over 36 equal monthly installments of $2,083 (“Navitas 2”). The equipment finance agreement contains customary events of default. The loan balance as of June 30, 2023 was $54,410 and $63,689 as of December 31, 2022.
Convertible Debenture [Member] | Summit Holding V, LLC [Member]  
Debt Instrument [Line Items]  
Schedule of Future Amortization of Loans Payable

 

   Payment Amortization 
2023 (6 months)  $- 
2024   346,500 
Total Note Payments  $346,500 
Current portion of note payable   - 
Non-Current Portion of Notes Payable  $346,500 
Convertible Debenture [Member] | Tierra Vista Partners, LLC [Member]  
Debt Instrument [Line Items]  
Schedule of Future Amortization of Loans Payable

   Payment Amortization 
2023 (6 months)  $- 
2024   3,500 
Total Note Payments  $3,500 
Current portion of note payable   - 
Non-Current Portion of Notes Payable  $3,500