Notes Payable, Related Parties

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Notes Payable, Related Parties

Note 6: Notes Payable, Related Parties

Promissory notes dated November 6, 2016, with a principal amount of $13,516 are due and bear interest of 5% and are payable on demand. Accrued interest to September 30, 2024, on these notes is $5,973.

In 2017 compensation was due to members of the executive management team in the amount of $312,000. In support of the growth of the Company, those executive team members agreed to defer receipt of payment by converting into loans that bear interest of 4%. $60,000 principal and accrued interest of $16,866 remains.

During 2021, a related party loaned the Company, on a short-term basis, $21,903. This amount was fully repaid in Q1, 2022. This related party will, from time to time, as necessary, lend the Company money on a short-term basis without charging interest. At December 31, 2022, the Company owed this party $10,081. This amount was repaid during Q2 2023 and the balance owing as of September 30, 2024, is nil.

On January 8, 2024, to alleviate the payables burden on the Company, executives agreed to, and the Company issued three long-term promissory notes totaling $640,000. Each note is a two-year term, carrying an interest rate of 10% per annum. The notes can become convertible notes at a conversion rate of 70% of the 30-day Volume Weighted Average Priced preceding the date of the notes ($0.035 per share) if both the Company and the holder both agree. As of September 30, 2024, accrued interest for these notes is $46,466.

Also on January 8, 2024, the Company, as part of a debt restructuring, issued four convertible promissory notes for payables owed to executives and management of the Company totaling $326,883 (see Note 4 for details).