CONVERTIBLE NOTES PAYABLE – RELATED PARTIES

12 Months Ended

Dec. 31, 2023

Convertible Notes Payable Related Parties

CONVERTIBLE NOTES PAYABLE – RELATED PARTIES

17. 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. Please see 3. Acquisitions for further information. Principal due under the convertible note payable – related parties was as follows at December 31, 2023 and 2022:

	December 31, 2023		December 31, 2022
Notes payable, 10%		27,383,700		27,500,000
Less: current portion		11,500,000		-
Notes payable, long-term potion	$	15,883,700	$	27,500,000
Less: debt discount		1,750,000		2,750,000
Notes payable, long-term portion, net		14,133,700		24,750,000

Interest expense under convertible notes payable – related parties was $3,878,696 and $937,500, of which $1,000,000 and $250,000 was related to amortization of the debt discount, for the years ended December 31, 2023 and 2022, respectively.