Convertible Notes Payable

12 Months Ended

Dec. 31, 2021

Convertible Notes Payable

Convertible Notes Payable

Note 10 – Convertible Notes Payable

Convertible notes payable consisted of the following at December 31, 2021 and 2020:

	2021		2020
Notes payable convertible into Clinigence common shares at $1.55 per share; bearing interest at a rate of 10%; net of debt discount of $3,904,221 and $0, respectively; maturing in July 2022	$	3,904,221	$	—

Included in the liabilities assumed in the AHA merger are convertible promissory notes to various individuals totaling

Included in the liabilities assumed in the AHA merger are convertible promissory notes to various individuals totaling $3,904,221 at December 31, 2021. The face value of the notes at issuance was $7,565,375. The noteholders were granted warrants to purchase the Company’s common stock at $1.55 per share in an amount equal to 50% of the shares to be received upon conversion of the Note.

The debt discount of $7,565,375 is being accreted over 20 months. The accreted balance as of December 31, 2021 is $3,904,221. During the year ended December 31, 2021, various noteholders converted principal balances of $1,820,000 into 1,173,834 common shares.

At the time of issuance of these notes based on independent valuation, debt discounts were calculated and allocated based on the relative values of $2,658,960 for the value of the warrants and $4,906,415 related to a beneficial conversion feature. The total debt discount of $3,703,134 is being accreted over 20 months. The accreted balance as of December 31, 2021 is $1,086,095.

Included in the liabilities assumed in the AHA merger are convertible promissory notes to an individual investor totaling $575,000. The note was entered into on August 25, 2020 and was convertible into AHA’s common stock contingent upon a merger transaction with a SPAC, which did not close. Under an Agreement with the investor signed on April 20, 2021, the Note was deemed to mature as of December 31, 2020 and accrued penalty interest was assessed through April 15, 2021 when the Note (including accrued interest) was to be converted into 625,313 shares of Clinigence common stock consisting of principal of $575,000 and penalty interest of $50,313, valued at $1.00 per share. On September 30, 2021, the Company entered into a promissory note settlement agreement whereby the noteholder converted the principal balance of $575,000 into 191,667 common shares valued at $3.00 per share, and the Company paid $51,750 of accrued interest to the noteholder.