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Notes Payable
9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Notes Payable

Note 9 – Notes Payable

 

2020 Convertible Notes Payable

 

From May 15, 2020, through July 1, 2020, the Company entered into agreements with accredited investors for their purchase of secured convertible notes issued by the Company in the aggregate original principal amount of $3,494,840 (the “2020 Convertible Notes”). See Note 14 – Unit Purchase Options and Warrants for additional information on related securities.

 

Interest on the 2020 Convertible Notes accrued at a rate of 10% per annum and was payable on the maturity dates of November 15, 2021, December 22, 2021, and December 30, 2021.

 

All amounts of principal and interest due under the 2020 Convertible Notes were convertible at any time after the issuance date, in whole or in part (subject to rounding for fractional shares), at the option of the holders, into the Company’s common stock at a fixed conversion price of $3.20, subject to adjustments.

 

As of September 30, 2022, all 2020 Convertible Notes had either converted or been repaid by the Company.

 

 

Interest expense on the 2020 Convertible Notes was $0 and $12,779 for the three months ended September 30, 2022, and 2021, respectively.

 

Interest expense on the 2020 Convertible Notes was $0 and $60,628 for the nine months ended September 30, 2022, and 2021, respectively.

 

Amortization of options discount on the 2020 Convertible Notes was $0 and $3,734 for the three months September 30, 2022, and 2021, respectively.

 

Amortization of options discount on the 2020 Convertible Notes was $0 and $168,767 for the nine months ended September 30, 2022, and 2021, respectively.

 

Amortization of warrant discount on the 2020 Convertible Notes was $0 and $3,955 for the three months ended September 30, 2022, and 2021, respectively.

 

Amortization of warrant discount on the 2020 Convertible Notes was $0 and $171,449 for the nine months ended September 30, 2022, and 2021, respectively.

 

Amortization of beneficial conversion feature on the 2020 Convertible Notes was $0 and $49,541 for the three months ended September 30, 2022, and 2021, respectively.

 

Amortization of beneficial conversion feature on the 2020 Convertible Notes was $0 and $559,665 for the nine months ended September 30, 2022, and 2021, respectively.

 

Amortization of issuance costs on the 2020 Convertible Notes was $0 and $20,594 for the three months ended September 30, 2022, and 2021, respectively.

 

Amortization of issuance costs on the 2020 Convertible Notes was $0 and $81,764 for the nine months ended September 30, 2022, and 2021, respectively.

 

Paycheck Protection Program

 

On July 1, 2020, the Company received a loan in the principal amount of $157,620 pursuant to the U.S. Small Business Administration’s Paycheck Protection Program. The loan matured 18 months from the date of funding, was payable over 18 equal monthly installments, and had an interest of 1% per annum. Up to 100% of the principal balance of the loan was forgivable based upon satisfaction of certain criteria under the Paycheck Protection Program. On June 16, 2021, the principal of the loan as well as $1,506 of accrued interest was forgiven and the note was extinguished. The Company recognized a gain of $159,126 on extinguishment of debt during the year ended December 31, 2021.