Notes Payable

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Notes Payable

10. Notes Payable

At June 30, 2023 and December 31, 2022, the balances of long-term unsecured notes to unrelated parties are as follows:

	June 30, 2023
	(unaudited)			December 31, 2022
Total notes payable	$	6,707,013		$	7,286,921
Less current maturities		(1,579,091	)		(1,340,597	)
Long-term maturities	$	5,127,922		$	5,946,324

These are notes payable to individuals. The notes have interest payable monthly, ranging from 6% to 8% per annum and are unsecured and subordinated. The principal is due on various dates through September 30, 2027. The maturity date of these notes automatically extends for periods of eight months to four years unless the note holder requests repayment through written instructions at least ninety days prior to the maturity date of the note. The automatic maturity extension of these notes is considered a loan modification. Interest expense on these notes totaled approximately $120,000 and $123,000 during the three months ended June 30, 2023 and 2022, respectively. Interest expense on these notes totaled approximately $248,000 and $251,000 during the six months ended June 30, 2023 and 2022, respectively. The Company received proceeds on these notes of $91,668 and $325,000 for the six months ended June 30, 2023 and 2022, respectively. The Company repaid principal on these notes of $671,576 and $236,000 for the six months ended June 30, 2023 and 2022, respectively. In April 2022, the Company exchanged $250,000 of these notes for 25,000 shares of Series A Convertible Preferred Stock at a price of $10.00 per share. There were no gains or losses on this exchange.