Notes Payable – Related Parties

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Notes Payable – Related Parties

Note 4 – Notes Payable – Related Parties

The Company executed a loan agreement for up to $5,000,000 in advances with a Company owned by a stockholder and who is the brother of the Company’s Chief Financial Officer as well as a member of the Board of Directors.

The Company also has executed various loans with other stockholders and members of the Board Directors.

The notes bear interest ranging from 10% - 18%. The notes all have initial one-year (1) dates to maturity and are automatically renewed for one-year (1) periods upon maturity. As a result, none of the notes payable - related parties are in default.

Typically, with each of these notes, the Company has issued shares of common stock, which have been recognized as a debt discount and amortized over the life of the note.

During 2022, the Company issued 103,538 shares of common stock under these arrangements and recoded a corresponding debt discount of $1,991.

During 2021, the Company issued 858,496 shares of common stock under these arrangements and recorded a corresponding debt discount of $30,791.

Notes payable – related parties consist of loans from various members of management and the Board of Directors, typically for use as working capital. Related terms were as follows:

Balance - December 31, 2020	$	2,411,605
Debt discount		(30,791	)
Amortization of debt discount (interest expense)		35,202
Conversion of stockholder advances to notes payable - related parties		74,920
Proceeds		354,328
Repayments		(100,000	)
Balance - December 31, 2021		2,745,264
Conversion of stockholder advances to notes payable - related parties (see Note 6)		51,769
Debt discount		(1,991	)
Amortization of debt discount (interest expense)		10,732
Balance - December 31, 2022	$	2,805,774

GREENWAY TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2022 AND 2021