SHORT-TERM NOTE RECEIVABLE - MARIZYME

9 Months Ended

Sep. 30, 2024

Receivables [Abstract]

SHORT-TERM NOTE RECEIVABLE - MARIZYME

NOTE 4 — SHORT-TERM NOTE RECEIVABLE - MARIZYME

Other current assets consisted of the following at September 30, 2024 and December 31, 2023:

	September 30,		December 31,
	2024		2023
Short-term note receivable - Marizyme	$	1,298,082	$	—
	$	1,298,082	$	—

On July 15, 2024, the Company advanced to Marizyme, Inc., $1,250,000 against which Marizyme had previously delivered its demand promissory note to the Company of like principal amount dated July 12, 2024 (the “Marizyme Note”). The Marizyme Note bears interest the rate of eighteen percent (18%) per annum. Marizyme may pre-pay all or any part of the outstanding principal or interest of the Marizyme Note at any time and from time to time, in whole or in part, without premium or penalty.

Under ASC 326-20, known as the current expected credit loss ("CECL") model, the Company was required to estimate credit losses expected over the life of an exposure (or pool of exposures) based on historical information, current information, and reasonable and supportable forecasts. The conclusion was that if the Company were to demand repayment of the loan mentioned above, management expects that the Company would be able to recover substantially all of its investment in a presumed liquidation of Marizyme’s assets, as the Company has seniority in any future bankruptcy or insolvency proceeding. As such, management estimates the expected credit losses on the Marizyme Note to be zero as of September 30, 2024.

The Company is also party to a Co-Development Agreement with Marizyme (see Note 11 - Research and License Agreements).