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Debt
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Debt

Note 5 – Debt

 

The following represents a summary of the Company’s debt (notes payable – related parties, third party debt for notes payable (including those owed on vehicles), and line of credit, including key terms, and outstanding balances at June 30, 2024 and December 31, 2023, respectively.

 

Notes Payable – Related Parties

 

The following is a summary of the Company’s notes payable – related parties at June 30, 2024 and December 31, 2023:

 

Balance - December 31, 2022  $- 
Advances   5,267,500 
Debt discount/issue costs   (1,608,900)
Amortization of debt discount/issue costs   1,406,015 
Repayments   (262,500)
Balance - December 31, 2023   4,802,115 
Advances   2,805,000 
Debt discount/issue costs - original issue discount   (255,000)
Debt discount/issue costs - stock issuances   (1,404,227)
Amortization of debt discount/issue costs   1,567,825 
Balance - June 30, 2024  $7,515,713 

 

 

EZFILL HOLDING, INC. AND SUBSIDIARY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2024

 

The following is a detail of the Company’s notes payable – related parties at June 30, 2024 and December 31, 2023:

 

Notes Payable - Related Parties
Note Holder  Issue Date  Maturity Date  Shares Issued with Debt   Interest Rate   Default Interest Rate   Collateral  June 30, 2024   December 31, 2023 
Note #1  April 19, 2023  July 17, 2024   100,000 A, B   10.00%   18.00%  All assets  $1,500,000   $1,500,000 
Note #2  September 22, 2023  July 17, 2024   60,000 A, B   10.00%   18.00%  All assets   600,000    600,000 
Note #3  October 13, 2023  July 17, 2024   176,000 A, B   0.00%   18.00%  All assets   320,000    320,000 
Note #4  July 5, 2023  August 31, 2024   -    8.00%   18.00%  All assets   440,000    440,000 
Note #5  August 2, 2023  August 31, 2024   -    8.00%   18.00%  All assets   440,000    440,000 
Note #6  August 23, 2023  August 31, 2024   -    8.00%   18.00%  All assets   110,000    110,000 
Note #7  August 30, 2023  August 31, 2024   -    8.00%   18.00%  All assets   165,000    165,000 
Note #8  September 6, 2023  August 31, 2024   -    8.00%   18.00%  All assets   220,000    220,000 
Note #9  September 13, 2023  August 31, 2024   -    8.00%   18.00%  All assets   110,000    110,000 
Note #10  November 3, 2023  August 31, 2024   -    8.00%   18.00%  All assets   165,000    165,000 
Note #11  November 21, 2023  August 31, 2024   -    8.00%   18.00%  All assets   220,000    220,000 
Note #12  December 4, 2023  August 31, 2024   -    8.00%   18.00%  All assets   220,000    220,000 
Note #13  December 13, 2023  August 31, 2024   -    8.00%   18.00%  All assets   165,000    165,000 
Note #14  December 18, 2023  August 31, 2024   -    8.00%   18.00%  All assets   110,000    110,000 
Note #15  December 20, 2023  August 31, 2024   -    8.00%   18.00%  All assets   55,000    55,000 
Note #16  December 27, 2023  August 31, 2024   -    8.00%   18.00%  All assets   165,000    165,000 
Note #17  January 5, 2024  August 31, 2024   -    8.00%   18.00%  All assets   110,000    - 
Note #18  January 16, 2024  August 31, 2024   -    8.00%   18.00%  All assets   165,000    - 
Note #19  January 25, 2024  August 31, 2024   -    8.00%   18.00%  All assets   165,000    - 
Note #20  February 7, 2024  August 31, 2024   -    8.00%   18.00%  All assets   165,000    - 
Note #21  February 20, 2024  August 31, 2024   -    8.00%   18.00%  All assets   165,000    - 
Note #22  February 28, 2024  August 31, 2024   20,800 C   8.00%   18.00%  All assets   165,000    - 
Note #23  March 8, 2024  August 31, 2024   20,800 C   8.00%   18.00%  All assets   165,000    - 
Note #24  March 15, 2024  August 31, 2024   20,800 C   8.00%   18.00%  All assets   165,000    - 
Note #25  March 26, 2024  August 31, 2024   13,889 C   8.00%   18.00%  All assets   110,000    - 
Note #26  April 2, 2024  August 31, 2024   20,800 C   8.00%   18.00%  All assets   165,000    - 
Note #27  April 8, 2024  August 31, 2024   20,800 C   8.00%   18.00%  All assets   165,000    - 
Note #28  April 22, 2024  August 31, 2024   20,800 C   8.00%   18.00%  All assets   165,000    - 
Note #29  May 8, 2024  August 31, 2024   20,800 C   8.00%   18.00%  All assets   165,000    - 
Note #30  May 15, 2024  August 31, 2024   20,800 C   8.00%   18.00%  All assets   165,000    - 
Note #31  May 20, 2024  August 31, 2024   20,800 C   8.00%   18.00%  All assets   165,000    - 
Note #32  May 28, 2024  August 31, 2024   13,889 C   8.00%   18.00%  All assets   110,000    - 
Note #33  June 10, 2024  August 31, 2024   20,800 C   8.00%   18.00%  All assets   165,000    - 
Note #34  June 28, 2024  August 31, 2024   20,800 C   8.00%   18.00%  All assets   165,000    - 
                            7,810,000    5,005,000 
                        Less: unamortized debt discount   294,287    202,885 
                           $7,515,713   $4,802,115 

 

A See discussion below regarding global amendment for Notes #1, #2 and #3.

 

 

EZFILL HOLDING, INC. AND SUBSIDIARY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2024

 

BSee discussion below regarding the limitation on the issuance of this lender due to a 9.99% equity ownership blocker.
CThese shares of common stock (256,578) were issued with the underlying original issue discount notes and treated as additional debt discount.

 

Year Ended December 31, 2023

 

Note #1 – Note Payable – Related Party - Material Stockholder greater than 5% and related Loss on Debt Extinguishment

 

During 2023, the Company originally executed a six-month (6) note payable with a face amount of $1,500,000, less an original issue discount of $150,000, along with an additional $140,000 in transaction related fees (total debt discount and issue costs of $290,000), resulting in net proceeds of $1,210,000. The $290,000 in debt discounts and issuance costs are being amortized over the life of the note to interest expense in the accompanying consolidated statements of operations.

 

In connection with obtaining this debt, the Company also committed 100,000 shares of common stock to the lender as additional interest expense (commitment fee). Under the terms of the agreement, only 40,000 shares of common stock were required to be issued on the commitment date resulting in a fair value of $256,000 ($6.40/share), based upon the quoted closing price. The Company recorded this amount as a debt discount which was being amortized over the life of the note. Total debt discounts recorded aggregated $546,000.

 

See Note 8.

 

In October 2023 (the initial maturity date), the Company executed a loan extension with the lender to extend the due date from October 2023 to April 2024. At this time, the remaining 60,000 shares were issued to the lender.

 

The Company evaluated the modification of terms under ASC 470-50, “Debt - Modification and Extinguishment”, and concluded that the extension of the maturity date resulted in significant and consequential changes to the economic substance of the debt and thus resulted in an extinguishment of the debt.

 

Specifically, on the date of modification, the Company determined that the present value of the cash flows of the modified debt instrument was greater than 10% different from the present value of the remaining cash flows under the original debt instrument.

 

 

EZFILL HOLDING, INC. AND SUBSIDIARY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2024

 

For the year ended December 31, 2023, the Company recorded a loss on debt extinguishment of $291,000 as follows:

 

 

      
Fair value of debt and common stock on extinguishment date*  $1,791,000 
Fair value of debt subject to modification   1,500,000 
Loss on debt extinguishment - related party  $291,000 

 

*The Company valued the issuance of the 60,000 commitment shares at $291,000, based upon the quoted closing trading price on the date of modification ($4.85/share).

 

Pursuant to the January 17, 2024 global amendment, effective for all previously issued notes with this lender, in the event of default, the lender may convert the note into shares of common stock equal to the greater of $3.08 and the lower of the average VWAP over the ten (10) preceding trading days; or the greater of the average of the VWAP over the ten (10) preceding trading days or a floor price of $1.75. Additionally, if the Company raises $10,000,000 or more, then Note #3 will be repaid. If the Company raises $15,000,000 or more, then both Notes #2 and #3 will be repaid.

 

The Company has determined that in the event of default, the note at that time may be treated as a derivative liability subject to financial reporting at fair value and related mark to market adjustments in subsequent reporting periods.

 

This note is subject to cross-default. In the event this note or any other notes issued by this lender are in default (Notes #1, #2 and #3), all of the notes with this lender will be considered in default.

 

At June 30, 2024, the Company is not in default on this note and believes it is in compliance with all terms and conditions of the note. See May 9, 2024 loan date extension below.

 

This lender is considered a related party since it has a greater than 5% controlling interest in the Company’s outstanding common stock.

 

Note #2 – Note Payable – Related Party - Material Stockholder greater than 5%

 

During 2023, the Company executed a six-month (6) note payable with a face amount of $600,000, less an original issue discount of $60,000, along with an additional $28,900 in transaction related fees (total debt discount and issue costs in cash of $88,900), resulting in net proceeds of $511,100.

 

In connection with obtaining this note, the Company also issued 60,000 shares of common stock to the lender having a fair value of $406,500, based upon the quoted closing trading price ($6.78/share).

 

 

EZFILL HOLDING, INC. AND SUBSIDIARY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2024

 

The issuance of these shares resulted in an additional debt issue cost. In total, the Company recorded debt discounts/issuance costs of $495,400 which is being amortized over the life of the note to interest expense in the accompanying consolidated statements of operations.

 

See Note 8.

 

While the note was initially due in March 2024, the Company had the right to extend the note by an additional six-months (6) to September 2024. The note was not formally extended on its maturity date, however, the lender has not given notice on default.

 

Pursuant to the January 17, 2024 global amendment, effective for all previously issued notes with this lender, in the event of default, the lender may convert the note into shares of common stock equal to the greater of $3.08 and the lower of the average VWAP over the ten (10) preceding trading days; or the greater of the average of the VWAP over the ten (10) preceding trading days or a floor price of $1.75. Additionally, if the Company raises $10,000,000 or more, then Note #3 will be repaid. If the Company raises $15,000,000 or more, then both Notes #2 and #3 will be repaid.

 

The Company has determined that in the event of default, the note at that time may be treated as a derivative liability subject to financial reporting at fair value and related mark to market adjustments in subsequent reporting periods.

 

This note is subject to cross-default. In the event this note or any other notes issued by this lender are in default (Notes #1, #2 and #3), all of the notes with this lender will be considered in default.

 

At June 30, 2024, the Company is not in default on this note and believes it is in compliance with all terms and conditions of the note. See May 9, 2024 loan date extension below.

 

This lender is considered a related party since it has a greater than 5% controlling interest in the Company’s outstanding common stock.

 

 

EZFILL HOLDING, INC. AND SUBSIDIARY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2024

 

Note #3 – Note Payable – Related Party - Material Stockholder greater than 5%

 

In October 2023, the Company executed a three-month (3) note payable with a face amount of $320,000, less an original issue discount of $48,000, resulting in net proceeds of $272,000.

 

In connection with obtaining this note, the Company was required to issue 104,000 shares of common stock to the lender having a fair value of $539,760, based upon the quoted closing trading price ($5.19/share). However, the issuance of these shares would result in the lender having a greater than 9.99% ownership of the Company, which is prohibited by agreement. These shares are classified as common stock issuable in the accompanying consolidated balance sheets.

 

The future issuance of these shares resulted in an additional debt issue cost. In total, the Company recorded debt discounts/issuance costs of $320,000 which is being amortized over the life of the note to interest expense. The aggregate discounts calculated above exceeded the face amount of the note and therefore were limited to the face amount of the note totaling $320,000.

 

Pursuant to the January 17, 2024 global amendment, effective for all previously issued notes with this lender, in the event of default, the lender may convert the note into shares of common stock equal to the greater of $3.08 and the lower of the average VWAP over the ten (10) preceding trading days; or the greater of the average of the VWAP over the ten (10) preceding trading days or a floor price of $1.75. Additionally, if the Company raises $10,000,000 or more, then Note #3 will be repaid. If the Company raises $15,000,000 or more, then both Notes #2 and #3 will be repaid.

 

The Company has determined that in the event of default, the note at that time may be treated as a derivative liability subject to financial reporting at fair value and related mark to market adjustments in subsequent reporting periods.

 

This note is subject to cross-default. In the event this note or any other notes issued by this lender are in default (Notes #1, #2 and #3), all of the notes with this lender will be considered in default.

 

At June 30, 2024, the Company is not in default on this note and believes it is in compliance with all terms and conditions of the note. See May 9, 2024 loan date extension below.

 

This lender is considered a related party since it has a greater than 5% controlling interest in the Company’s outstanding common stock.

 

 

EZFILL HOLDING, INC. AND SUBSIDIARY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2024

 

In January 2024, with respect to Notes #2 and #3 discussed above, as a result of extending the note maturity dates as amended to April 19, 2024, the Company was required to issue 72,000 shares of common stock. However, the issuance of these shares would result in the lender having a greater than 9.99% ownership of the Company, which is prohibited by agreement.

 

The Company determined the fair value of these shares was $270,000 ($3.75/share), based upon the quoted closing trading price, and recorded additional interest expense during the six months ended June 30, 2024.

 

At June 30, 2024 and December 31, 2023, the Company reflected 330,000 and 104,000 shares, respectively as common stock issuable.

 

Extension of Notes #1, #2 and #3

 

On May 9, 2024, with respect to Notes #1, #2 and #3 discussed above, as a result of extending the note maturity dates as amended to July 17, 2024, the Company was required to issue 66,000 shares of common stock. However, the issuance of these shares would result in the lender having a greater than 9.99% ownership of the Company, which is prohibited by agreement.

 

The Company determined the fair value of these shares was $407,550 ($6.18/share), based upon the quoted closing trading price, and recorded additional interest expense during the six months ended June 30, 2024.

 

Notes #4 - #34 - Notes Payable – Related Party - Material Stockholder greater than 20%

 

Notes Payable – Related Party

 

Six Months Ended June 30, 2024

 

The Company executed several two-month (2) notes payable with an aggregate face amount of $2,805,000, less original issue discounts of $255,000, resulting in net proceeds of $2,550,000.

 

In connection with obtaining these notes, the Company was required to issue 256,578 shares of common stock to the lender having a fair value of $1,404,227, based upon the quoted closing trading price ($3.75 - $7.10/share).

 

In total, the Company recorded debt discounts/issuance costs totaling $1,659,227, which is being amortized over the life of these notes to interest expense.

 

 

EZFILL HOLDING, INC. AND SUBSIDIARY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2024

 

These notes are initially due two-months (2) from their issuance dates. If the notes reach maturity and are still outstanding, the notes and related accrued interest will automatically renew for successive two-month (2) periods.

 

These notes bear interest at 8% for the 1st nine-months (9), then 18% each month thereafter.

 

The lender is required to issue in writing any event of default. If an event of default occurs, all outstanding principal and accrued interest will be multiplied by 150% and become immediately due. Additionally, if the Company raises $3,000,000 (debt or equity based), the entire outstanding principal and accrued interest are immediately due.

 

Finally, in an event of default, the lender has the right to convert any or all of the outstanding principal and accrued interest into common stock equal to the greater of the average VWAP closing price over the ten (10) trading days ending on the date of conversion or $1.75 (the floor price). In the event such a conversion were to occur, which can only happen by default, the Company would evaluate the potential for recording derivative liabilities.

 

At June 30, 2024, the Company is not in default on any of these notes and believes it is in compliance with all terms and conditions of the notes.

 

This lender is considered a related party as it is controlled by Michael Farkas, an approximate 27% stockholder in the Company.

 

Year Ended December 31, 2023

 

During the year ended December 31, 2023, the Company executed several two-month (2) notes payable with an aggregate face amount of $2,585,000, less original issue discounts of $235,000, resulting in net proceeds of $2,350,000.

 

These notes are initially due two-months (2) from their issuance dates. If the notes reach maturity and are still outstanding, the notes and related accrued interest will automatically renew for successive two-month (2) periods.

 

These notes bear interest at 8% for the 1st nine-months (9), then 18% each month thereafter.

 

The lender is required to issue in writing any event of default. If an event of default occurs, all outstanding principal and accrued interest will be multiplied by 150% and become immediately due. Additionally, if the Company raises $3,000,000 (debt or equity based), the entire outstanding principal and accrued interest are immediately due.

 

 

EZFILL HOLDING, INC. AND SUBSIDIARY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2024

 

Finally, in an event of default, the lender has the right to convert any or all of the outstanding principal and accrued interest into common stock equal to the greater of the average VWAP closing price over the ten (10) trading days ending on the date of conversion or $1.75 (the floor price). In the event such a conversion were to occur, which can only happen by default, the Company would evaluate the potential for recording derivative liabilities.

 

At December 31, 2023, the Company was not in default on any of these notes and believed it was in compliance with all terms and conditions of the notes.

 

This lender is considered a related party as it is controlled by Michael Farkas, an approximate 20% stockholder in the Company.

 

Note Payable - Other

 

Year Ended December 31, 2023

 

During 2023, an entity controlled by this majority stockholder (approximately 20% common stock ownership) advanced unsecured working capital funds (net proceeds after original issue discount of $12,500 was $250,000) to the Company. In 2023, the note principal of $262,500 along with accrued interest of $13,125, aggregating $275,625 was repaid.

 

Note Payable (non-vehicles)

 

The following is a summary of the Company’s note payable (non-vehicles) at June 30, 2024 and December 31, 2023, respectively:

 

   Loan #1   Loan #2   Total 
Balance - December 31, 2022  $-   $-   $- 
Face amount of note   275,250    -    275,250 
Debt discount   (25,250)   -    (25,250)
Amortization of debt discount   9,729    -    9,729 
Repayments   (133,289)   -    (133,289)
Balance - December 31, 2023   126,440    -    126,440 
Face amount of note   -    277,500    277,500 
Debt discount   -    (27,500)   (27,500)
Amortization of debt discount   15,521    4,524    20,045 
Repayments   (141,961)   (46,164)   (188,125)
Balance - June 30, 2024  $-   $208,360   $208,360 

 

In April 2023, the Company executed a note payable with a face amount of $275,250. Under the terms of the agreement, the lender will withhold 8.9% of the Company’s daily funds arising from sales through the lender’s payment processing services until the Company has repaid the $275,250 (interest is $25,250). The $25,250 is considered a debt issuance cost and is being amortized over the life of the note to interest expense in the accompanying consolidated statements of operations. The Company received net proceeds of $250,000.

 

 

EZFILL HOLDING, INC. AND SUBSIDIARY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2024

 

In April 2024, the Company executed a note payable with a face amount of $277,500. Under the terms of the agreement, the lender will withhold 8.1% of the Company’s daily funds arising from sales through the lender’s payment processing services until the Company has repaid the $277,500 (interest is $27,500). The $27,500 is considered a debt issuance cost and will be amortized over the life of the note to interest expense.

 

This note represented the refinancing of the initial note from April 2023. Under the terms of the new agreement, the Company received net proceeds of $192,131, which is a result of the repayment of the outstanding balance of $57,869 on the date of refinancing (gross amount of note exclusive of interest was $250,000).

 

On the date of refinancing, all previous outstanding unamortized debt discount associated with the initial advance (loan #1) will be expensed.

 

The following is a detail of the Company’s note payable (non-vehicles) at June 30, 2024 and December 31, 2023, respectively:

 

Note Payable
Issue Date  Maturity Date  Date Repaid  Collateral  June 30, 2024   December 31, 2023 
April 16, 2023  December 12, 2024  April 24, 2024  All assets  $-   $141,961 
April 24, 2024  October 21, 2025  N/A  All assets   231,336    - 
         Less: unamortized debt discount   22,976    15,521 
            $208,360   $126,440 

 

Notes Payable - Vehicles

 

The following is a summary of the Company’s notes payable for its vehicles at June 30, 2024 and December 31, 2023, respectively:

 

      
Balance - December 31, 2022  $2,009,896 
Repayments   (836,618)
Balance - December 31, 2023  $1,173,278 
Repayments   (407,762)
Balance - June 30, 2024  $765,516 

 

 

EZFILL HOLDING, INC. AND SUBSIDIARY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2024

 

The following is a detail of the Company’s notes payable for its vehicles at June 30, 2024 and December 31, 2023, respectively:

 

Notes Payable - Vehicles
Issue Date  Maturity Date  Interest Rate   Default Interest Rate  Collateral  June 30, 2024   December 31, 2023 
January 15, 2021  November 15, 2025   11.00%  N/A  This vehicle  $21,527   $28,370 
April 9, 2019  February 17, 2024   4.90%  N/A  This vehicle   -    1,873 
December 15, 2021  December 18, 2024   3.50%  N/A  This vehicle   19,072    37,823 
December 16, 2021  December 18, 2024   3.50%  N/A  This vehicle   18,669    37,023 
January 11, 2022  January 25, 2025   3.50%  N/A  This vehicle   22,214    40,911 
January 11, 2022  January 25, 2025   3.50%  N/A  This vehicle   22,214    40,911 
January 11, 2022  January 25, 2025   3.50%  N/A  This vehicle   22,214    40,911 
January 11, 2022  January 25, 2025   3.50%  N/A  This vehicle   22,214    40,911 
February 8, 2022  February 10, 2025   3.50%  N/A  This vehicle   24,806    43,046 
February 8, 2022  February 10, 2025   3.50%  N/A  This vehicle   24,807    43,046 
February 8, 2022  February 10, 2025   3.50%  N/A  This vehicle   25,324    43,944 
February 8, 2022  February 10, 2025   3.50%  N/A  This vehicle   24,806    43,045 
April 5, 2022  April 20, 2025   3.50%  N/A  This vehicle   31,623    50,157 
April 5, 2022  April 20, 2025   3.50%  N/A  This vehicle   31,623    50,157 
April 5, 2022  April 20, 2025   3.50%  N/A  This vehicle   32,623    51,157 
April 5, 2022  April 20, 2025   3.50%  N/A  This vehicle   32,067    50,862 
April 5, 2022  April 20, 2025   3.50%  N/A  This vehicle   32,107    50,925 
April 5, 2022  April 20, 2025   3.50%  N/A  This vehicle   32,107    50,925 
April 5, 2022  April 20, 2025   3.50%  N/A  This vehicle   32,107    50,925 
April 5, 2022  April 20, 2025   3.50%  N/A  This vehicle   32,106    50,925 
August 4, 2022  August 18, 2025   4.99%  N/A  This vehicle   14,766    20,837 
August 4, 2022  August 18, 2025   4.99%  N/A  This vehicle   14,766    20,838 
November 1, 2021  November 11, 2025   4.84%  N/A  This vehicle   13,396    17,913 
November 1, 2021  November 11, 2025   0.00%  N/A  This vehicle   13,678    18,572 
November 1, 2021  November 11, 2025   0.00%  N/A  This vehicle   13,728    18,572 
June 1, 2022  May 23, 2026   0.90%  N/A  This vehicle   19,097    24,035 
June 1, 2022  May 23, 2026   0.90%  N/A  This vehicle   19,110    24,032 
April 27, 2022  May 10, 2027   9.05%  N/A  This vehicle   93,364    107,047 
April 27, 2022  May 1, 2026   8.50%  N/A  This vehicle   59,381    73,585 
                  765,516    1,173,278 
           Less: current portion   629,721    811,516 
           Long term portion  $135,795   $361,762 

 

 

EZFILL HOLDING, INC. AND SUBSIDIARY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2024

 

Debt Maturities

 

The following represents the maturities of the Company’s various debt arrangements as noted above for each of the five (5) succeeding years and thereafter as follows:

 

For the Year Ended December 31,  Notes Payable - Related Parties   Notes Payable   Vehicles   Total 
                 
2024 (6 Months)  $7,810,000   $-   $412,232   $8,222,232 
2025   -    231,336    282,561    513,897 
2026   -    -    55,837    55,837 
2027   -    -    14,886    14,886 
Total  $7,810,000   $231,336   $765,516   $8,806,852 

 

Line of Credit

 

Year Ended December 31, 2023

 

In 2021, the Company entered into a Securities-Based Line of Credit, Promissory Note, Security, Pledge and Guaranty Agreement (the “Line of Credit”) with City National Bank of Florida.

 

The line of credit had an outstanding balance of $1,000,000 at December 31, 2022 and was repaid in 2023 for $1,008,813 (principal of $1,000,000 plus accrued interest of $8,813).

 

To secure the repayment of the Credit Limit, the Bank had a first priority lien and continuing security interest in the securities held in the Company’s investment portfolio with the Bank. The Company liquidated its entire position in the investment portfolio in 2023.

 

In connection with the repayment of the line of credit, no further advances had been made and the bank closed the line of credit.