CONVERTIBLE NOTES PAYABLE – RELATED PARTIES

3 Months Ended

Mar. 31, 2023

Convertible Notes Payable Related Parties

CONVERTIBLE NOTES PAYABLE – RELATED PARTIES

15. CONVERTIBLE NOTES PAYABLE – RELATED PARTIES

The convertible notes payable, related party were issued as part of consideration for the acquisition of Forever 8. The discount was calculated based on the fair value of the instrument as of October 1, 2022. See Note 3. Acquisitions for further information. Principal due under the convertible note payable – related parties was as follows at March 31, 2023 and December 31, 2022:

	March 31, 2022			December 31, 2021
Notes payable, 10%		27,383,700			27,500,000
Less: debt discount		(2,500,000	)		(2,750,000	)
Notes payable, net	$	24,883,700		$	24,750,000

Interest expense under convertible notes payable – related parties was $937,000 and $0, of which $250,000 and $0 was related to amortization of the debt discount, for the three months ended March 31, 2023 and 2022, respectively.