Loans Receivable

9 Months Ended

Sep. 30, 2024

Loans Receivable [Abstract]

LOANS RECEIVABLE

6 LOANS RECEIVABLE

On February 22, 2024, the Company (utilizing a portion of the proceeds from the issuance of convertible notes) loaned funds to Business Warrior in the principal amount of $226,190, which includes an original issue discount equal to $67,857, for net proceeds to Business Warrior of $158,333. The loan is memorialized by a secured promissory note (the “Business Warrior Note”). The Business Warrior Note does not accrued interest, except in the case of an event of default, which case interest accrues at 15% per annum. The Business Warrior Note matures on the earlier to occur of December 31, 2025 and the date that Business Warrior securities are listed on a national securities exchange. The Business Warrior Note may be prepaid at any time for an amount equal to 110% of the then principal and accrued interest. The Company has the right to exchange the Business Warrior Note for securities issued by Business Warrior in any subsequent private placement by Business Warrior. The principal and accrued interest under Business Warrior Note is convertible into common stock of Business Warrior at a price equal to $0.0036 per share, subject to certain adjustments and potential resets. Business Warrior’s obligations under the Business Warrior Note are guaranteed by Business Warrior’s subsidiaries and secured by a lien on Business Warrior’s accounts receivable.

The debt discount on the Business Warrior’s note is amortized as income utilizing the effective interest rate method.

Between June 19, 2024 and September 10, 2024, the Company (utilizing a portion of the proceeds from the issuance of convertible notes) loaned additional funds to Business Warrior in the aggregate principal amount of $130,000 (the “2024 Business Warrior Note”). The 2024 Business Warrior Notes accrues interest at 8% per annum and matures between November 1, 2024 and February 1, 2025. The 2024 Business Warrior Notes plus any accrued interest may be prepaid at any time without penalty.

Loans receivable consists of the following:

Description	Interest Rate	Maturity date	Principal		Accrued Interest		Unamortized debt discount			September 30, 2024 Amount, net
Business Warrior Corporation	0.0%	December 31, 2025	$	226,190	$	-	$	(48,243	)	$	177,947
	8.0%	November 1, 2024		30,000		677		-			30,677
	8.0%	January 1, 2025		35,000		399					35,399
	8.0%	February 1, 2025		50,000		263					50,263
	8.0%	February 1, 2025		15,000		66					15,066
Total convertible notes payable			$	356,190	$	1,405	$	(48,243	)	$	309,352
Disclosed as follows:
Current portion of notes receivable										$	131,405
Long-term portion of notes receivable											177,947
										$	309,352

Discount amortized to income as deemed interest during the three months and nine months ended September 30, 2024 was $8,407 and $19,614, respectively.

Interest earned for the three and nine months ended September 30, 2024 was $1,333 and $1,405, respectively.