CONVERTIBLE NOTES PAYABLE – RELATED PARTIES

12 Months Ended

Dec. 31, 2024

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 Note 3. Acquisitions for further information. Principal due under the convertible note payable – related parties was as follows at December 31, 2024 and 2023:

	December 31, 2024		December 31, 2023
Notes payable, 12% and 10%		21,771,155		27,383,700
Less: current portion		11,500,000		11,500,000
Notes payable, long-term potion	$	10,271,155	$	15,883,700
Less: debt discount		750,000		1,750,000
Notes payable, long-term portion, net		9,521,155		14,133,700

Interest expense under convertible notes payable – related parties was $2,916,597 and $3,878,696, of which $1,000,000 and $1,000,000 was related to amortization of the debt discount, for the years ended December 31, 2024 and 2023, respectively.