NOTES PAYABLE

3 Months Ended

Mar. 31, 2025

NOTES PAYABLE

NOTES PAYABLE

NOTE 7 – NOTES PAYABLE

Notes payable consisted of the following:

	March 31, 2025		December 31, 2024
Related Party:
Note payable to Craig Holland, non-interest bearing, maturing on December 31, 2025	$	6,925	$	6,925
Convertible note payable to Craig Holland, non- interest bearing, maturing on December 31, 2025		186,450		186,450
Convertible note payable to Mick Donahoo, non- Interest bearing, maturing on December 31, 2025		186,450		186,450
Other:
Small Business Loan, payable to financial institution, 3.75% interest, payments of $731, due in 2050		150,000		150,000
Merchant loan, repayment rate of 17% of daily sales, due April 2026		63,639		113,271
Total notes payable	$	593,464	$	643,096
Less current portion		443,464		493,096
Notes payable, net of current portion	$	150,000	$	150,000

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.

The Company had a note payable to Craig Holland, its Chief Executive Officer, with a balance of $6,925 at March 31, 2025 and December 31, 2024. 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, 2025 and December 31, 2024. 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 three months ended March 31, 2025 and 2024, total imputed interest expense was $9,366 and $9,470; respectively, which was recorded to additional paid-in capital.

Future maturities of notes payable as of March 31, 2025 are as follows:

December 31,	Amount
2025	$	443,464
2026		-
2027		-
2028		1,883
2029		3,274
Thereafter		144,843
Notes Payable	$	593,464