NOTES PAYABLE

6 Months Ended

Jun. 30, 2024

NOTES PAYABLE

NOTES PAYABLE

NOTE 7 – NOTES PAYABLE

Notes payable consisted of the following:

	June 30, 2024		December 31, 2023
Related Party:
Note payable to Craig Holland, non-interest bearing, maturing on December 31, 2024	$	6,925	$	6,925
Convertible note payable to Craig Holland, non- interest bearing, maturing on December 31, 2024		186,450		186,450
Convertible note payable to Mick Donahoo, non- Interest bearing, maturing on December 31, 2024		186,450		186,450
Other:
Note payable to financial institution, secured by vehicle, interest at 2.9%, monthly payments of $901, due in 2025		8,009		13,255
Small Business Loan, payable to financial institution, 3.75% interest, monthly payments of $731, due in 2050		150,000		150,000
Total notes payable	$	537,834	$	543,080
Less current portion		387,834		390,394
Notes payable, net of current portion	$	150,000	$	152,686

On May 18, 2020, the Company received an additional U.S. Small Business Administration Loan (SBA Loan) in the amount of $150,000 to alleviate continued economic injury caused the COVID-19 crisis. The SBA Loan has a fixed interest rate of 3.75% and matures in thirty years from the date of the loan. Payments were scheduled to begin twelve months from the effective date in a fixed amount of $731 per month. All payments will be applied to interest first. This loan is secured by the general assets of the Company. The SBA Loan has since indicated that the first payments are not required to begin until 30 months from the date of the note. Subsequent to June 30, 2024, the Company received a temporary reduction in payments for this loan and will only pay $73 monthly from August 2024 to January 2025, after which normal payments will resume.

The Company had a note payable to Craig Holland, its Chief Executive Officer, with a balance of $6,925 at March 31, 2024 and 2023. The Company also had convertible notes payable to Mr. Holland and Mick Donahoo, its Chief Financial Officer, with a total balance of $372,900 as of March 31, 2024 and 2023. Messrs. Holland and Donahoo have the right, at any time, at their election, to convert all or part of the amount due into shares of fully paid and non-assessable shares of common stock of the Company. The fixed conversion price is $0.02 per share.

The Company has imputed interest expense on the notes payable – related party using an annual rate of 10%. During the six months ended June 30, 2024 and 2023, total imputed interest expense was $18,940 and $18,836; respectively, which was recorded to additional paid-in capital.

Future maturities of notes payable as of June 30, 2024 are as follows:

December 31,	Amount
2024	$	385,148
2025		2,686
2026		-
2027		2,704
2028		3,305
Thereafter		143,991
Notes Payable	$	537,834