Notes Payable

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

Notes Payable

Note 5 – Notes Payable

Notes payable at December 31, 2020 and 2019 consisted of the following:

	2020			2019
Notes payable to individual investors; accrue interest at 8% per annum; principal payments equal to 1/12 of original balance plus interest due quarterly; due from dates ranging from August 9, 2020 to March 26, 2021; unsecured (A)	$	304,667			319,667
Note payable to the Small Business Administration. The note bears interest at 3.75% per annum, requires monthly payments of $731 after 12 months from funding and is due 30 years from the date of issuance.		149,414			-
Note payable issued under the Paycheck Protection Program of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act in the amount of $192,775. The loan has terms of 24 months and accrues interest at 1% per annum. During the year ended December 31, 2020, $184,775 of this loan has been forgiven as provided for in the CARES Act.		8,000			-
Notes payable to a finance company, default interest at 14% per annum; monthly principal payments ranging from $10,000 to $40,000 with unpaid principal due on December 15, 2021		355,438			-
Total notes payable		817,519			319,667
Unamortized debt discount		(1,973	)		(32,289	)
Notes payable, net discount		815,546			287,378
Less current portion		(666,132	)		(287,378	)
Long-term portion	$	149,414		$	-

(A) In connection with the issuance of these notes payable in 2018 and 2017, the Company also issued an aggregate of 24,050 shares of its common stock to these note holders as additional incentive to make the loans. The aggregate relative fair value of these shares of common stock was $119,875 and was recorded as a discount on the note payable and as additional paid in capital. The discount of $119,875 is being amortized over the term of the notes payable. During the years ended December 31, 2020 and 2019, $30,316 and $39,922, respectively, was charged to interest expense as amortization of the discounts, with an unamortized balance of $1,93 at December 31, 2020.

A rollforward of notes payable from December 31, 2018 to December 31, 2020 is below:

Notes payable, December 31, 2018	$	2,617,970
Issued for cash		2,009,300
Repayments		(4,379,814	)
Amortization of debt discounts		39,922
Notes payable, December 31, 2019		287,378
Issued for cash		342,675
Lease obligation converted to note payable		355,438
Forgiveness of note payable		(184,775	)
Repayments		(15,486	)
Amortization of debt discounts		30,316
Notes payable, December 31, 2020	$	815,546

Future payments under note payable obligations are as follows:

Years ending December 31,
2021	$	668,105
2022		3,104
2023		3,175
2024		3,296
2025		3,422
Thereafter		136,417
	$	817,519