NOTES PAYABLE, RELATED PARTY

12 Months Ended

Dec. 31, 2023

Notes Payable Related Party

NOTES PAYABLE, RELATED PARTY

22. NOTES PAYABLE, RELATED PARTY

Notes payable, related party at December 31, 2023 and December 31, 2022, were comprised of the following:

	Interest rate	Due date	December 31, 2023		December 31, 2022
Notes from officers - AAI	18%	February 1, 2024*	$	98,000	$	-
Notes from officers - TurnOnGreen	14%	Past due		51,000		25,000
Notes from board member - ROI	18%	January 19, 2024*		90,000		-
Ault & Company advances	No interest	Upon demand		1,909,000		-
Advances from officers - AAI	No interest	Upon demand		-		300,000
Advances from officers - TurnOnGreen	No interest	Upon demand		-		14,000
Advances from officers - GIGA	8%	Upon demand		52,000		-
Other related party advances	No interest	Upon demand		175,000		13,000
Total notes payable			$	2,375,000	$	352,000

Ault & Company Loan Agreement

On June 8, 2023, the Company entered into a loan agreement with Ault & Company as lender. The loan agreement provides for an unsecured, non-revolving credit facility in an aggregate principal amount of up to $10 million. All loans under the loan agreement are due within five business days after request by Ault & Company. Ault & Company is not obligated to make any further advances under the loan agreement after December 8, 2023. Advances under the loan agreement bear interest at the rate of 9.5% per annum and may be repaid at any time without penalty or premium. As of December 31, 2023, $4.6 million has been advanced under the loan agreement and was exchanged for a senior secured convertible promissory note with Ault & Company (see Note 24).

In August 2023, Ault & Company assumed $11.6 million of secured promissory notes previously issued by the Company for which the Company has issued term notes to Ault & Company in the same amount. One term note has a principal amount of $1.1 million and bears interest at 12% and the second term note has a principal amount of $10.5 million and bears interest at 10%. These assumed loans were exchanged for a senior secured convertible promissory note with Ault & Company (see Note 24).

Summary of interest expense, related party, recorded within interest expense on the condensed consolidated statement of operations:

	For the Year Ended
	December 31,
	2023		2022
Interest expense, related party	$	664,000	$	-