Notes Payable

12 Months Ended

Dec. 31, 2022

Notes Payable [Abstract]

Notes Payable

(6) Notes Payable

(a) Paycheck Protection Program Loan

In June 2021, the Company was notified by the Georgia Primary Bank (the Lender) that the unsecured loan in the amount of $812,500, which was made pursuant to the PPP, and accrued interest of $9,015 was fully forgiven; and, as a result, the entire amount was derecognized on the Company’s financial statements, which was included as other income for the twelve months ended December 31, 2021 on the accompanying statements of comprehensive loss. The Company is required to maintain all necessary records for at least six years following the date of forgiveness, and the SBA reserves the right to audit the Company’s fully forgiven PPP loan.

As of December 31, 2022 and 2021, no amounts were outstanding under the PPP loan. For the years ended December 31, 2022 and 2021, no interest expense on the PPP loan was recognized.

(b) AFCO Credit Corporation (AFCO)

In June 2021, the Company executed a Promissory Note with AFCO to finance certain insurance premiums totaling $558,367, requiring the Company to pay $111,673 in a down payment and make monthly installment payments. The annual interest rate was 5.25% and the monthly installment payments were $45,751, which represented principal and interest. The final installment payment was paid April 2022.

In June 2022, the Company executed another Promissory Note with AFCO to finance certain insurance premiums totaling $465,380, requiring the Company to pay $47,539 in a down payment and make monthly installment payments. The annual interest rate is 5.7% and the monthly installment payment is $47,539, which represent principal and interest. The final installment payment is due March of 2023.

As of December 31, 2022 and December 31, 2021, the principal balance on the AFCO note was $141,298 and $181,123, respectively and is included in Notes payable – current portion in the accompanying balance sheets. Interest expense in connection with the AFCO promissory notes was $10,572 and $10,775 the years ended December 31, 2022 and 2021, respectively.