RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2023

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

NOTE 8 - RELATED PARTY TRANSACTIONS

Loans from Related Parties

The Company had received a loan from a minority shareholder of $19,709 in February 2022 that bore interest at the rate of 20% per annum. The principal of $18,228, plus accrued interest of $3,646, totaling $21,874 was repaid on February 15, 2023. The related party loan of $81,162 was borrowed in Q4 2021, which bore no interest, and was repaid in full by April 30, 2022.

In the nine months to September 30, 2023, the Company received a loan of $27,672 (£22,700) from an executive of the Company. The Loan had an original issue discount of $6,954 (£5,700). The net proceeds received by the Company totaled $20,738(£17,000), and the $6,954(£5,700) debt discount was amortized to interest expense during the period the loan was outstanding. The loan principal is due to be repaid on October 6, 2023.

Activity on this loan to arrive at September 30, 2023, and December 31, 2022, balances is as follows:

	September 30,			December 31,
	2023			2022
Beginning Balance	$	18,152		$	81,162
Effects of currency translation		76			(4,779	)
Loan Payable		18,228			76,383
Addition		27,692			19,709
Repayment		(18,228	)		(77,940	)
Ending Balance	$	27,692		$	18,152

During the nine months ended September 30, 2023, and 2022, the Company received proceeds on these loans of $20,738ok directors fee and $19,709, respectively, made repayments of $18,228 and $79,940, respectively, and accrued interest of $0 and $443, respectively. The Loans from related parties were received in GBP, and any difference deduced is due to fluctuation in the exchange rate.

The Company has loans from our founder, Stephen Morris, with a balance of $1,316,435 and $899,309 at September 30, 2023 and December 31, 2022, respectively as follows:

Loan 1.

The loan is non-interest-bearing and repayable on demand.

On May 23, 2022, the Company entered an amendment to the Loan Agreement between Bubblr Limited and Mr. Morris to change the loan from a demand loan to have a maturity date on the earlier of (i) the completion of an offering by Bubblr, Inc., in the amount of no less than $7,500,000 in a public offering, or (ii) two years from the date of the amendment.

In addition, on a date no later than five (5) business days from the completion of bridge financing of no less than $1.5 million USD, the Company shall pay to Mr. Morris an amount equal to $140,289 (£115,000) as an installment payment on the principal of the Loan, and the balance of the principal of the Loan shall be paid at the Maturity Date

On September 6, 2022, the Company entered into a second amendment (the “Amendment”) with Bubblr Limited and Mr. Morris to add $60,000 (£52,088) to the principal of the loan in exchange for Mr. Morris canceling his Special 2019 Series A Preferred Stock, which had super-voting rights.

On December 20, 2022, the Company entered into a third amendment (the “Amendment”) with Bubblr Limited and Mr. Morris to reduce the outstanding principal amount of the loan by $71,540 (£59,543) in exchange for the Company assigning advances receivables of $71,540 (£59,543) whereon Mr. Morris is entitled to amounts received pursuant to such receivables and will bear the risk of non-payment with respect to such receivables. After this assignment, the Company will have no right to receive any amounts collected with respect to such receivables and will have no liability for non-payment of the receivables or any costs of collections.

In aggregate, the Company received $387,927 and $0 proceeds and made repayments of $0 and $0 during the nine months ended September 30, 2023, and 2022, respectively, on the loans with Mr. Morris.

Loan 2.

On September 7, 2022, our wholly owned subsidiary, Bubblr Limited, entered into a new loan agreement (the “Loan Agreement”) with Mr. Morris for $501,049 (£434,060). The Loan Agreement is unsecured, carries no interest, is non-convertible, and is due upon maturity, which is three years after the date of the agreement.

Activity on this loan to arrive at September 30, 2023, and December 31, 2022, balances is as follows:

	Nine Months Ended September 30,		Year Ended December 31,
	2023		2022
Beginning balance current	$	374,018		428,117
Effects of currency translation		3,029		(42,619	)
Loan Payable		377,047		385,558
Additions		387,927
Conversion from preferred stock		-		60,000
Assignment of advances receivable		21,916		(71,540	)
Ending balance – Current	$	786,890	$	374,018
Beginning balance non-current	$	525,291	$	-
Additions		-		501,049
Effects of currency translation		4,254		24,242
Ending balance non-current	$	529,545		525,291
Ending balance current and non-current	$	1,316,435	$	899,309