Note 5 - Notes Payable

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE 5 – NOTES PAYABLE

The balances of notes payable were as follows:

	Due Date	As of June 30, 2021		As of December 31, 2020
Promissory note 2019	March 31, 2021	$	-	$	1,490,833
Promissory note 2020	March 31, 2021		-		1,464,146
2018 Investor Loan	March 31, 2021		-		1,721,776
Total Notes Payable, gross			-		4,676,755
Less: Unamortized discount			-		(244,830	)
Total Notes Payable, net		$	-	$	4,431,925

Promissory Note Conversions

Each investor received the right to convert all or any part of its 2018 Investor loan into shares of the Company’s common stock at a conversion factor that is the lesser of a discounted price. The number of conversion shares that may be issued was limited. As of March 31, 2020, the maximum number of conversion shares had been issued, no additional shares were available to be issued related to this conversion option. During the first three months of 2020, the investors converted $267,328 of the principal balance and received 170,000 shares of the Company’s common stock.

Also, the investor in the 2019 and 2020 promissory notes converted $514,011 of the principal balance and received 1,107,544 shares of the Company’s common stock during the first quarter of 2021 through February 15, 2021.

Promissory Note Repayment

On March 1, 2021, the Company used $5,906,802 of the proceeds of the private placement on February 23, 2021, to repay in full the outstanding principal and interest and applicable premium amounts under the 2018 Investor Loan, the 2019 Promissory Note and the 2020 Promissory Note.