NOTES PAYABLE (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

SCHEDULE OF LONG-TERM DEBT

The Company’s notes payables balance as of March 31, 2024 and December 31, 2023, consisted of the following:

		March 31,						December 31,
		2024						2023
		Current			Non-current			Current			Non-current
Collateralized Loans:
M&T Bank	(a)		289,007			-			133,072			188,121
Daimler Truck	(b)		37,479			-			53,429			-
Ascentium Capital	(c)		204,958			608,198			195,519			612,674
Balboa Capital	(d)		43,874			125,236			42,829			136,604
Blue Bridge Financial	(e)		12,094			36,056			11,733			39,218
Channel Equipment Finance	(f)		80,042			93,371			93,818			98,230
Financial Pacific	(g)		32,460			93,068			33,006			100,214
M2 Equipment	(h)		53,845			176,331			43,099			134,940
Meridian Equipment Finance	(i)		28,658			78,190			28,001			85,606
Navitas	(j)		40,642			108,417			39,840			118,883
Pawnee Leasing Corp	(k)		47,090			135,624			45,910			147,848
Signature Bank	(l)		81,241			274,306			79,732			295,189
Trans Lease, Inc.	(m)		95,719			354,042			44,657			112,912
Verdant Commercial Capital	(n)		47,916			109,954			47,175			122,215
Western Equipment Capital	(o)		46,028			129,695			45,016			141,589
Amur Equipment Finance	(p)		34,662			178,253			33,465			187,381
CH Brown Company LLC	(q)		20,082			123,346			-			-
TF Group, Inc.	(r)		16,446			91,040			-			-
Issued prior to Titan Merger:
Michaelson Capital	(s)		2,257,090			-			2,307,090			-
Loanbuilder	(t)		91,096			80,142			91,096			102,916
Individual	(u)		25,000			-			25,000			-
Kabbage Funding Loans	(v)		-			-			9,344			-
Related Parties:
Titan Holdings 2	(w)		331,000			537,470			175,000			603,470
Titan Holdings 5	(x)		107,000			-			40,000			-
Miller	(y)		305,000			-			250,000			-
Rizzo	(z)		118,000			-			65,000			-
Total outstanding principal			4,446,429			3,332,739			3,932,831			3,228,010
Less: discounts			(26,847	)		(51,757	)		(21,385	)		(53,325	)
Total notes payable			4,419,582			3,280,982			3,911,446			3,174,685
Less: Notes payable – related parties			861,000			537,470			530,000			603,470
Notes payable		$	3,558,582		$	2,743,512		$	3,381,446		$	2,571,215

(a)	Titan Trucking entered into a collateralized loan on December 23, 2022 with M&T Bank which matures on February 23, 2025. The loan has an interest rate of 8.78% and the Company remits monthly payments of $13,000 with a balloon payment at maturity of $176,497.
(b)	On June 3, 2019, Titan Trucking entered into another collateralized loan agreement with Daimler Truck for $160,601, with a maturity date of September 3, 2024. Titan Trucking makes monthly payments of $2,795 towards principal and interest. Interest accrues at a rate of 6% per annum. On June 14, 2019, Titan Trucking entered into another collateralized loan agreement with Daimler Truck for $155,740, with a maturity date of September 29, 2024. Titan makes monthly payments of $2,762 towards principal and interest. Interest accrues at a rate of 6% per annum.
(c)	Between May 5, 2022, and June 5, 2022, Titan Trucking entered into three equipment financing agreements with Ascentium Capital. The agreements had principal amounts between $250,000 and $311,795, matured after a term of three years, and had annual interest rates ranging from 3.75% to 5.82%. Titan Trucking makes monthly payments towards principal and interest ranging from $4,753 to $5,935. On December 25, 2023 Titan Trucking entered into an equipment financing agreement with Ascentium Capital for $220,202, which matures on December 25, 2028. Titan Trucking makes monthly payments of $4,742 towards principal and interest. Interest accrues at a rate of 10.58% per annum. On March 5, 2024 Titan Trucking entered into an equipment financing agreement with Ascentium Capital for $52,754, which matures on March 5, 2029. Titan Trucking makes monthly payments of $945 towards principal and interest. Interest accrues at a rate of 11.15% per annum
(d)	On August 13, 2022, Titan Trucking entered into a collateralized loan agreement with Balboa Capital for $230,482, which matures five years from the commencement date. Titan Trucking makes monthly payments of $4,860 towards principal and interest. Interest accrues at a rate of 9.68% per annum.
(e)	On August 11, 2022, Titan Trucking entered into an equipment finance agreement with Blue Bridge Financial for $64,539, which matures five years from the commencement date. Titan Trucking makes monthly payments of $1,442 towards principal and interest. Interest accrues at a rate of 12.18% per annum.
(f)	On September 19, 2023, Titan Trucking entered into an equipment finance agreement with Channel Equipment Finance for $123,574, which matures on August 28, 2028. Titan Trucking makes monthly payments of $3,051 towards principal and interest. Interest accrues at a rate of 16.69% per annum. On October 31, 2023, Titan Trucking entered into an equipment finance agreement with Channel Equipment Finance for $84,000, which matures on November 15, 2024. Titan Trucking makes monthly payments of $7,448 towards principal and interest. Interest accrues at a rate of 56.95% per annum.
(g)	On July 15, 2022, Titan Trucking entered into an equipment financing agreement with Financial Pacific for $74,841, which matures five years from commencement. Titan Trucking makes monthly payments of $1,585 towards principal and interest. Interest accrues at a rate of 9.87% per annum. On October 15, 2022, Titan Trucking entered into an additional equipment financing agreement with Financial Pacific for $95,127, which matures five years from commencement. Titan Trucking makes monthly payments of $1,906 towards principal and interest. Interest accrues at a rate of 7.49% per annum.

(h) On August 10, 2022, Titan Trucking entered into an equipment financing agreement with M2 Equipment for $230,000, which matures five years from commencement. Titan Trucking makes monthly payments of $4,739 towards principal and interest. Interest accrues at a rate of 8.68% per annum.   On March 22, 2024, Titan Trucking entered into an equipment financing agreement with M2 Equipment for $62,564, which matures five years from commencement. Titan Trucking makes monthly payments of $1,384 towards principal and interest. Interest accrues at a rate of 11.75% per annum.

(i) On August 16, 2022, Titan Trucking entered into an equipment financing agreement with Meridian Equipment Finance for $149,076, which matures five years from commencement. Titan Trucking makes monthly payments of $3,118 towards principal and interest. Interest accrues at a rate of 9.32% per annum.

(j)	On July 23, 2022, Titan Trucking entered into an equipment financing agreement with Navitas for $210,000, which matures five years from commencement. Titan Trucking makes monthly payments of $4,257 towards principal and interest. Interest accrues at a rate of 7.99% per annum.
(k)	On August 15, 2022, Titan Trucking entered into an equipment financing agreement with Pawnee Leasing Corp. for $248,157, which matures five years from commencement. Titan Trucking makes monthly payments of $5,296 towards principal and interest. Interest accrues at a rate of 10.19% per annum.
(l)	On June 22, 2022, Titan Trucking entered into a collateralized loan agreement with Signature Bank for $284,951, which matures six years from commencement. Titan makes monthly payments of $4,849 towards principal and interest. Interest accrues at a rate of 6.93% per annum. On September 15, 2022, Titan Trucking entered into a collateralized loan agreement with Signature Bank for $191,250, which matures five years from commencement. Titan makes monthly payments of $3,901 towards principal and interest. Interest accrues at a rate of 8.25% per annum.
(m)	On August 20, 2022, Titan Trucking entered into a collateralized loan agreement with Trans Lease, Inc. for $210,750, which matures five years from commencement. Titan Trucking makes monthly payments of $4,838 towards principal and interest. Interest accrues at a rate of 9.75% per annum. On January 20, 2024, Titan Trucking entered into a collateralized loan agreement with Trans Lease, Inc. for $310,750, which matures five years from commencement. Titan Trucking makes monthly payments of $6,799 towards principal and interest. Interest accrues at a rate of 11.27% per annum.
(n)	On April 27, 2022, Titan Trucking entered into a collateralized debt agreement with Verdant Commercial Capital for $241,765, which matures five years from commencement. Titan Trucking makes monthly payments of $4,702 towards principal and interest. Interest accrues at a rate of 6.25% per annum.
(o)	On August 15, 2022, Titan Trucking entered into an equipment financing agreement with Western Equipment Capital for $240,726, which matures five years from commencement. Titan Trucking makes monthly payments of $4,989 towards principal and interest. Interest accrues at a rate of 8.93% per annum.
(p)	On November 8, 2023, Titan Trucking entered into an equipment financing agreement with Amur Equipment Finance for $223,428, which matures five years from commencement. Titan Trucking makes monthly payments of $5,215 towards principal and interest. Interest accrues at a rate of 14.14% per annum.
(q)	On January 5, 2024, Titan Trucking entered into an equipment financing agreement with CH Brown Company, LLC for $146,425, which matures five years from commencement. Titan Trucking makes monthly payments of $3,785 towards principal and interest. Interest accrues at a rate of 18.83% per annum.
(r)	On January 21, 2024, Titan Trucking entered into an equipment financing agreement with TF Group, Inc. for $110,000, which matures five years from commencement. Titan Trucking makes monthly payments of $2,605 towards principal and interest. Interest accrues at a rate of 14.79% per annum.

Note Payables issued prior to Titan Merger:

(s)

On January 5, 2023, the Company completed its asset acquisition of the Recoup Digester Assets and as part of the consideration, assumed the liabilities of a $3,017,090 Secured Promissory Note owed to Michaelson Capital Special Finance Fund II, L.P. (“Michaelson”). The Company and Michaelson agreed to amend and restate the Secured Promissory Note, as well as sign a related Forbearance Agreement (together known as the “Michaelson Note”). The Michaelson Note originally had a 12% per annum interest rate. The Michaelson Note has the following terms: (1) the Company was to make monthly interest payments for the interest amounts owed, (2) the Company was to make monthly principal payments of $35,000, (3) the Company was to make a $250,000 principal repayment due as of December 31, 2023, and (4) the Company was to repay all other outstanding amounts owed by December 31, 2023. The Michaelson Note also includes a provision granting Michaelson a security interest and lien on all of the Company’s assets as collateral.

In October 2023, the Company and Michaelson agreed to forbear the principal payments owed to Michaelson during the three months ended September 30, 2023 until October 30, 2023. On December 28, 2023 the Company and Michaelson signed a Forbearance Agreement (the “December Michaelson Amendment”) that was accounted for as a debt modification in accordance with ASC 470 – Debt.

The December Michaelson Amendment established a period ending on March 31, 2024 during which Michaelson agreed to forbear from exercising its rights against the Company with respect to a default. Additionally, it set the following repayment terms: 1) on or before December 31, 2023, the Company was to make a $125,000 principal payment, 2) on or before January 31, 2024, the Company was to make a principal payment of $50,000, 3) on or before March 31, 2023, the Company was to repay its remaining principal obligations to Michaelson, 4) beginning on January 2024, the Company was to make three monthly interest payments of $22,571, and 5) following the payment of its other obligations owed to Michaelson, the Company was to issue to Michaelson $50,000 worth of preferred stock at the current offering terms and conditions. In April 2024, the Company and Michaelson agreed to extend the term of the Michaelson Note until June 30, 2024, and forbear all other terms until May 1, 2024. In exchange for such extension and forbearance, the Company agreed to: 1) pay $600,000 to Michaelson upon the closing of the acquisition of Standard Waste Services, LLC, of which $500,000 will be repayment of principal and $100,000 will be a fee for the forbearance (payable $50,000 in cash and $50,000 in Series B Preferred Stock), 2) any new debt incurred by the Company shall be subordinated to the Michaelson Note, and 3) Michaelson is to receive 25% of the net proceeds on any capital raised greater than $6.0 million (Note 17 – Subsequent Events).

(t)

Between January 14, 2022 and July 6, 2022, the Company signed four loan agreements with the Loanbuilder Service of Paypal, Inc (the “Loanbuilder Notes”). Three of the four Loanbuilder Notes were settled prior to May 19, 2023. The remaining note (“Loanbuilder – 3”) was in default on May 19, 2023. On May 19, 2023, the outstanding liabilities owed due to the Loanbuilder Notes was $299,710, inclusive of $50,599 owed due to Loanbuilder – 3. On June 15, 2023, the Company agreed to settle Loanbuilder – 3. In accordance with ASC 470-60, “Troubled Debt Restructuring by Debtors,” each of the Loanbuilder Notes is accounted for as a troubled debt restructuring due to their respective settlement agreements. As a result of the Loanbuilder - 3 settlement, the Company recorded a net gain on extinguishment of debt of $25,299 in the consolidated statement of operations for the year ended December 31, 2023. Additionally, the Company agreed to pay the lender $6,325 in four monthly payments beginning in June 2023. Excluding the Loanbuilder - 3 repayments, and as of December 31, 2023, the Company had 28 remaining required monthly repayments of $6,046 and 16 remaining required monthly repayments of $1,545 for the other Loanbuilder Notes.

(u)

On May 16, 2022, the Company issued a $25,000 promissory note (the “Individual #1 Note”) with an individual private investor. The Individual Note has an annual interest rate of 12% per annum and matured on December 31, 2023, at which time all principal and accrued interest is owed. The Individual #1 Note is in default and therefor incurs additional interest of 0.5% on all outstanding principal and interest owed.

(v)

On September 28, 2022 and September 29, 2022, the Company agreed to two Kabbage Funding Loan Agreements (together known as the “Kabbage Loans”) owed to American Express National Bank. The Kabbage Loans had an initial principal amount of $120,800 and as of May 19, 2023 had a principal amount of $77,748. Each loan includes a cost of capital interest expense of $4,077 and is to be repaid in nine monthly repayments of $3,658, followed by nine monthly payments of $35,507.

Related Parties:

(w) On April 30, 2023, Titan Trucking signed a promissory note (the “Titan Holdings 2 Note”) with Titan Holdings 2, LLC (“Titan Holdings 2”), a stockholder of the Company. On November 10, 2023, Titan Trucking and Titan Holdings 2 agreed to a restated promissory note (together the two notes are the “Titan Holdings 2 Note”). The Titan Holdings 2 Note has a principal amount of $712,470. The interest rate was 10.5% for the period of April 30, 2023 through November 30, 2023 and increased to 13.00% commencing on December 1, 2023. Accrued interest is required to be paid on a monthly basis and all outstanding principal owed is due five years commencing after the signing of the restated promissory note. Titan Trucking was also required to make a one-time principal payment of $175,000 on or before December 8, 2023, and because all outstanding interest and principal was not repaid by December 31, 2023, an additional $50,000 penalty charge was added to the outstanding principal owed.   Titan has an informal agreement with Titan Holdings 2 to continually borrow from Titan Holdings 2 as working capital needs arise. These additional funds are to be repaid as funding becomes available. As of March 31, 2024, Titan had borrowed $106,000 in additional funding.

(x)	On December 31, 2023, Titan Trucking and a stockholder of the Company agreed to an informal agreement (the “Titan Holdings 5 Note”) to borrow funds from the stockholder as working capital needs arise. These additional funds are to be repaid as funding becomes available. As of March 31, 2024, Titan had borrowed $107,000 in additional funding.
(y)	On October 30, 2023, Titan Trucking and the Company’s CEO, Glen Miller (“Miller”), agreed to a promissory note for a principal amount of $250,000. The promissory note is non-interest bearing and to be repaid within 30 days of the Company’s receipt of bridge funding. The note also features a provision stating Titan Trucking will pay a 10% late fee in the event repayment is not made by more than 30 days past maturity. On February 23, 2024, the Company and Miller agreed to a promissory note for a principal amount of $55,000. The promissory note is non-interest bearing, has a maturity date of June 30, 2024, and has an original issue discount of $5,000. The note also features a provision stating the Company will pay a 10% late fee in the event repayment is not made by more than 30 days past maturity.
(z)	On November 30, 2023, the Company and its COO, Jeff Rizzo (“Rizzo”), agreed to a promissory note for a principal amount of $65,000. The promissory note is non-interest bearing and to be repaid within 30 days of the Company’s receipt of bridge funding. The note also features a provision stating the Company will pay a 10% late fee in the event repayment is not made by more than 30 days past maturity. Titan has an informal agreement with Rizzo to continually borrow from Rizzo as working capital needs arise. These additional funds are to be repaid as funding becomes available. As of March 31, 2024, Titan had borrowed $53,000 in additional funding.

SCHEDULE OF PRINCIPAL MATURITIES OF NOTES PAYABLE

Principal maturities for the next five years and thereafter as of March 31, 2024 were as follows:

Remainder of 2024	$	4,030,539
2025		1,149,704
2026		991,339
2027		720,828
2028		329,389
Thereafter		557,369
Total principal payments	$	7,779,168
Less: debt discounts		(78,604	)
Total notes payable	$	7,700,564