Notes payable

9 Months Ended

Sep. 30, 2022

Notes payable

Note 11 Notes Payable

Note 11 Notes payable

The Company’s notes payables are summarized below:

	September 30, 2022			December 31, 2021
Paycheck Protection Program loan issued February 10, 2021	$	-		$	2,000,000
Notes payable issued May 19, 2021 (8% interest)		11,860,055			11,860,055
Notes payable issued December 17, 2021 (7.5% interest)		15,925,926			15,925,926
Total face value		27,785,981			29,785,981
Less: unamortized discount		(5,037,990	)		(3,698,458	)
Total carrying value	$	22,747,991		$	26,087,523

Prior to our acquisition, BW was approved for a Paycheck Protection Program loan on February 10, 2021 from the Small Business Administration (“SBA”) in the amount of $2,000,000. In the second quarter of 2022, the loan was forgiven by the SBA. Although the loan was forgiven by the SBA, per our purchase agreement with the sellers of BW in December 2021, if such an event occurred, the Company is obligated to reimburse the SBA loan of $2,000,000 to such sellers. As such, the $2,000,000 SBA loan was reclassified from notes payable to accrued liability on the consolidated balance sheet as of June 30, 2022 and was reimbursed to the sellers of BW during the third quarter of 2022.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Interest expense	$	484,642	$	209,160	$	1,453,926	$	278,114
Amortization of debt discount		494,561		252,039		2,547,207		252,039
Total	$	979,203	$	461,199	$	4,001,133	$	530,153

The accrued interest relating to the notes payable as of September 30, 2022 and December 2021 was $161,547 and $115,250, respectively.