Convertible Promissory Notes - Related Parties

3 Months Ended

Mar. 31, 2023

Convertible Notes Payable [Abstract]

Convertible Promissory Notes – Related Parties

Convertible Promissory Notes – Related Parties

The Company entered into convertible promissory notes – related parties as follows as of March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
Convertible note payable with a trust related to one of the Company’s directors, convertible at $0.26 per share, at 5% interest (amended April 4, 2022)	3,209,617		3,209,617
Less: BCF Discount	(1,910,444)		(2,210,187)
	$	1,299,173	$	999,430

Interest expense which includes amortization of discount for the three months ended March 31, 2023 and 2022 was $340,120 and $417,219, respectively. There was no accrued interest on the note payable at March 31, 2023. The amount of the BCF discount recorded was evaluated for characteristics of liability or equity and was determined to be equity under ASC 470 and ASC 480. The Company recognized this as additional paid in capital, and the discount is being amortized over the life of the note.

The entire convertible promissory note – related parties balance is reflected in long-term liabilities.