NOTE 8 - RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2023

Related Party Transactions [Abstract]

NOTE 8 - 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. Of the related party loan of $81,162 borrowed in Q4 2021, which bore no interest, there was an outstanding balance of $26,434 at March 31, 2022, which was repaid by April 30, 2022.

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

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

During the three months ended March 31, 2023 and 2022, the Company received proceeds on these loans of $0 and $19,709, respectively, made repayments of $18,228 and $52,556, 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 $1,171,970 and $899,309 at March 31, 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 £115,000 GBP 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 has 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.  

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 3 years after the date of the agreement.

In aggregate the Company received $223,777 and $0 proceeds and made repayments of $0 and $66,000 during the three months ended March 31, 2023 and 2022, respectively, on the loans with Mr. Morris.

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

	Three Months Ended March 31,		Year Ended December 31,
	2023		2022
Beginning balance current	$	374,018	$	428,117
Effects of currency translation		38,466		(42,619	)
Loan Payable		412,484		385,558
Additions		223,777
Conversion from preferred stock		—		60,000
Assignment of advances receivable		—		(71,540	)
Ending balance – Current	$	636,261	$	374,018
Beginning balance non-current	$	525,291	$	—
Additions		—		501,049
Effects of currency translation		10,418		24,242
Ending balance non-current	$	535,709	$	525,291
Ending balance current and non-current	$	1,171,970	$	899,309