XML 26 R15.htm IDEA: XBRL DOCUMENT v3.26.1
Loans Payable
12 Months Ended
Dec. 31, 2025
Loans Payable  
Loans Payable

Note 6. Loans Payable

 

On June 23, 2021, the Company entered into a purchase agreement to acquire certain assets from MedScience Research Group, Inc (“MedScience”) (See Note 5 – Capitalized Software and Intangible Assets for additional information). As part of that purchase agreement, the Company issued a Promissory Note with a principal sum of $750,000. The principal, along with associated interest, were to be paid in 36 equal monthly installments that began in July 2021.

 

The Promissory Note provides for various events of default similar to those provided for in similar transactions, including the failure to timely pay amounts due thereunder. In the event of a default, the interest rate on the outstanding principal would increase to a predetermined interest rate defined in the Promissory Note. The Company had deferred certain principal payments and MedScience indicated that it would forbear taking any action but reserved all of its rights under its agreement. The most recent notice of forbearance was received on March 20, 2025. The combined principal due along with accrued interest as of December 31, 2025 is $470,529 and as of December 31, 2024 was $433,334, without giving effect to additional interest of $49,165 and $30,567, respectively, which MedScience may have demanded as a result of the failure to make payments on the due dates provided in the Promissory Note.

 

On December 31, 2025, the Company repurchased, cancelled, and extinguished the Promissory Note which had an outstanding principal and accrued interest balance totaling $470,529. In consideration for the repurchase of the Promissory Note, the Company issued an aggregate of 1,568,432 shares of its common stock. As of December 31, 2025, the principal loan balance and all accrued interest were discharged and had a $0 balance in the consolidated balance sheets.

 

On November 12, 2025, the Company entered into a fixed-fee short-term loan with its merchant bank and received $114,400 in net loan proceeds. The loan is repaid by the merchant bank withholding an agreed-upon percentage of payments they process on behalf of the Company with a minimum of $14,262 paid every 60 days. The loan payable is due in May 2027. As of December 31, 2025, the loan balance was $90,704 and is split between current and non-current liabilities on the consolidated balance sheets. The December 31, 2024 loan balance of $66,294 is all recorded in current liabilities on the consolidated balance sheets.