Convertible notes payable

9 Months Ended

Sep. 30, 2022

Convertible notes payable

Note 8 Convertible Notes Payable

Note 8 Convertible notes payable

The Company’s outstanding convertible notes payable are summarized below:

	September 30, 2022		December 31, 2021
Issued on May 8, 2020 (8% interest)	$	-	$	3,000,000
Issued on November 3, 2020 (8% interest)		-		3,888,889
Issued on May 19, 2021 (8% interest)		-		5,610,000
Issued on April 30, 2021 (6% interest)		-		66,400
Total face value		-		12,565,289
Less: unamortized discount		-		(5,389,692	)
Total carrying value	$	-	$	7,175,597

On June 30, 2022, convertible notes payable of Arena Investors LP with a face value of $12,498,889 (net discounted value of $8,205,504) were exchanged for Series D preferred stock. See “Note 15 Equity” for more details.

April 30, 2020 Sutton Global Note $227,525 Face Value

On April 30, 2020, the former CEO of Charge converted his payable into a convertible note with a face value of $300,000. The note has a coupon rate of 6% and a maturity date of December 31, 2021. The note is convertible at a rate of $0.0005 per share. Since the note added a conversion option, it resulted in a debt modification requiring the Company to record a loss on modification of debt in the amount of $98,825. On March 25, 2021, Sutton Global Associates converted $149,000 in principal and $12,125 in accrued interest into 644,499 shares of the Company’s common stock. The remaining note balance was subsequently sold to an unrelated party who converted the entire principal and accrued interest balance into 319,950 shares of the company common stock on March 12, 2022.

Interest expense and amortization of debt discount and debt issuance costs for the convertible notes payable are as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Interest expense	$	-	$	259,835	$	497,053	$	604,605
Amortization of debt discount		-		912,767		5,391,022		1,895,555
Amortization of debt issuance costs		-		-		-		7,397
Total	$	-	$	1,172,602	$	5,888,075	$	2,507,557

The accrued interest relating to the convertible notes payable as of September 30, 2022 and December 2021 was $0 and $183,067, respectively.