LONG-TERM DEBT - RELATED PARTIES

3 Months Ended

Mar. 31, 2023

Long-term Debt - Related Parties

LONG-TERM DEBT - RELATED PARTIES

NOTE 11: LONG-TERM DEBT - RELATED PARTIES

The following is a summary of the current portion - long-term debt - related parties as of March 31, 2023 and December 31, 2022:

		March 31, 2023		December 31, 2022
Note payable - Director	(a)	$	-	$	400,000
			-		400,000
Current portion of long-term debt related parties			-		(400,000	)
Long-term debt – related parties		$	-	$	-

(a) On June 15, 2021 the Company issued a $400,000 promissory note to a director with a maturity date of December 12, 2021 (“the director note”). The director note did not bear interest however the director received two tranches of 18,750 shares of Common Stock each for lending this amount. Under the terms of the director note if the note was repaid by the maturity date, one of the two tranches of 18,750 shares was to be returned. The Company and the director extended the maturity date of this note to June 14, 2022, however the note was not repaid and the company was considered to be in default on the director note.   On December 30, 2022, the director, the Company, and Evergreen Capital Management, LLC (“Evergreen”) signed a note purchase agreement (the “Evergreen note purchase”). In accordance with the Evergreen note purchase, Evergreen purchased the director note from the director, and the company issued 150,000 shares of its Common Stock to the director for a value of $17,555. Please See Note 13 – Stockholders’ equity (Deficiency).   Pursuant to the Evergreen note purchase the Company exchanged director the note with Evergreen for a secured convertible promissory note (“Evergreen – 4”) which was issued on December 30, 2022 and has a maturity date of December 31, 2023. Please Note 10 – Convertible Notes Payable and Note 15 – Derivative Liabilities.

Interest expense on these notes for the three months ended March 31, 2023 and 2022 was $0 and $0, respectively.