Loans Payable

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

LOANS PAYABLE

NOTE 6 – LOANS PAYABLE

The loan payable balances are as follows:

	Rate			June 30, 2022		December 31, 2021
Loan 1		1	%	$	27,000	$	-
Loan 2		1	%		3,000		-
Loan 3		8	%		64,000		-
Loan 4		8	%		160,500		-
Loan 5		3.75	%		309,500		40,400
Total				$	564,000	$	40,400

Loans 1 through 4 are past due as of the issuance of these financial statements.

Loan 1) On May 30, 2013 and August 12, 2013, the Company received advances from a director for $2,000 and $25,000, respectively. On August 12, 2013, the Company entered into an unsecured, non-guaranteed, demand loan agreement with the director for $27,000. The loan bears interest at 1% per annum compounded monthly.

Loan 2) On February 27, 2014, and March 19, 2015, the Company received advances from a director of $6,000, and $10,200, respectively. During the year ended December 31, 2015, the Company repaid $13,200. The advances are unsecured, due on demand and bears interest at 1% per annum compounded and calculated monthly.

Loan 3) On September 18, 2014, May 29, 2015, July 3, 2015, December 2, 2015, and January 4, 2016, the Company entered into unsecured, non-guaranteed, loan agreements pursuant to which the Company received proceeds of $35,000, $4,000, $5,000, $22,000, and $45,000, respectively. The loans bear interest at 8% per annum compounded annually and are due 1 year after the date of issuance.

Loan 4) On December 4, 2014, January 29, 2015, August 12, 2015, August 21, 2015, September 1, 2015, September 15, 2015, November 13, 2015, and December 23, 2015, the Company issued unsecured notes payable of $20,000, $20,000, $20,000, $25,000, $40,000, $25,000, $30,000 and $10,000, respectively, to a significant shareholder. The notes bear interest at an annual rate of 8% per annum, are uncollateralized, and due 1 year after the date of issuance.

Loan 5) In February 2022, the Company agreed to the second and third modifications of the Economic Injury Disaster Loan (“EIDL” or “Loan 5”). The EIDL was modified to include additional borrowings of $269,200, which were received in full in February 2022. Periodic monthly payments have increased to $1,506. Additionally, the Company entered into an amended security agreement with the SBA in which this promissory note, and the modifications, is collateralized by certain of the Company’s property as specified within the amended security agreement.

Annual maturities of the loans payable are as follows:

For the year ending	Amount
December 31, 2022 (remainder of year)	$	254,500
December 31, 2023		5,994
December 31, 2024		6,807
December 31, 2025		7,066
December 31, 2026		7,336
Thereafter		282,297
Total payments		564,000