Convertible Notes Payable

3 Months Ended

Mar. 31, 2022

Convertible Notes Payable

Convertible Notes Payable

Note 9 – Convertible Notes Payable

Convertible notes payable consisted of the following at March 31, 2022 and December 31, 2021:

	2022		2021
Notes payable convertible into Nutex common shares at $1.55 per share; bearing interest at a rate of 10%; net of debt discount of $3,771,858 and $3,904,221, respectively; maturing in July 2022	$	3,771,858	$	3,904,221

Included in the liabilities assumed in the AHA merger are convertible promissory notes to various individuals totaling $3,771,858 at March 31, 2022. 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 March 31, 2022 is $3,771,858. During the three months ended March 31, 2022, various noteholders converted principal balances of $330,000 into 212,903 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 March 31, 2022 is $1,086,095.